Political risk insurance helps businesses safeguard their investments and operations in countries with unstable political or economic conditions. It offers protection against losses caused by events such as government expropriation, political violence, currency inconvertibility, or contract breaches by state entities. By securing political risk insurance, companies can confidently expand into emerging or high-risk markets, knowing they have financial coverage if instability disrupts their projects. This safety net not only mitigates potential losses but also reassures investors and lenders, making it easier to secure funding for international ventures while navigating unpredictable political landscapes.