Expropiation
Expropriation coverage protects lenders and investors against a broad range of actions by host governments that reduce or eliminate fundamental creditor or ownership rights in the insured loan or investment. In addition to outright acts of nationalization and confiscation, “creeping expropriation” (a series of acts that cumulatively have an expropriatory effect), deprivation of assets or collateral, and blockages of funds intended to be remitted as debt service, dividends or return of capital can be included in Expropriation coverage.
Breach of Contract / Arbitration Award Default coverage can also be added to Expropriation coverage to protect lenders or investors against the non-honoring of an arbitral award in their favor by the host government.