Coup d'état and investment cover

A coup d'état is the seizure of power by force or outside constitutional channels, most often by the military. The political risk policy does not cover it as such: it covers the acts the new government carries out afterward, such as expropriation, withdrawal of an operating permit, blocking of currency transfers or the political violence that accompanies the takeover. The loss therefore often arises months after the event, through a series of measures none of which is enough on its own. For the underwriter, a coup changes the risk of every policy in force in the country at once, which makes it an accumulation risk. It also requires reading the effective date of each act, since the cover of an investment depends on when the deprivation is established, not on when the regime fell.