types of coverage

In a world of increasing political uncertainty, politically-motivated violence and terrorism can have a crippling impact on your overseas investments.

OPIC’s Political Violence coverage compensates investors for equity assets (including property) and income losses caused by:

  • Declared or undeclared war
  • Hostile actions by national or international forces
  • Revolution, insurrection, and civil strife
  • Terrorism and sabotage

OPIC pays compensation for two types of losses:

  • Assets: Damage to covered tangible assets; and
  • Business Income: Income losses resulting from damage to assets of the foreign enterprise caused by political violence/terrorism.  

Investors may purchase one or both coverages. In addition, OPIC can provide coverage for:

  • Evacuation expenses
  • Temporary abandonment: Income losses if the political violence causes the evacuation or forced abandonment of a project
  • Offsite riders: OPIC can compensate for income losses resulting from damage to specific sites outside the insured facility, such as a critical railway spur, power station, or supplier
Project Profile: OPIC insurance mitigates risk to help Haiti recover from the earthquake

Wheat and wheat-derived products have long been diet staples in Haiti, particularly among the country’s low-income families. In 2010, a massive earthquake destroyed a key flour mill and animal feed facility, Les Moulinsd’Haiti (LMH), which produced as much as 95 percent of the flour consumed there. Rebuilding the mill required not only substantial investment but also a way to mitigate the risk of doing business in one of the poorest and most unstable countries in the Western Hemisphere. OPIC provided political risk insurance to Seaboard Overseas Limited, a U.S. company working on the mill’s rebuilding, operation and maintenance through a joint venture with Continental Grain Co.; Unibank, a commercial bank in Haiti; and the Government of Haiti.

A mill recovering from the 2010 earthquake in Haiti

The insurance covered damage to assets or business income loss resulting from political violence. Reconstruction of the facility – including a four mill, offices, warehouse, storage silos machine shops and an electricity generating plant -- began in February of 2010 and was completed in December 2011. Along with increased production capacity and more modern equipment, the facility was rebuilt to handle greater seismic activity. Rebuilding Les Moulinsd’Haiti has created 150 local jobs and increased the supply and distribution of flour throughout Haiti.