Types of Coverage

MIGA offers coverage for five non-commercial risks. Coverages may be purchased individually or in combination.

MIGA’s Small Investment Program (SIP) offers a standardized package of risk coverage that includes Currency inconvertibility and transfer restriction; Expropriation; and War, terrorism, and civil disturbance. Breach of contract is not offered under SIP.


Currency Inconvertibility and Transfer Restriction

Protects against losses arising from an investor’s inability to legally convert local currency (capital, interest, principal, profits, royalties, and other remittances) into hard currency (Dollar, Euro or Yen) and/or to transfer hard currency outside the host country where such a situation results from a government action or failure to act.



Protects against losses arising from certain government actions that may reduce or eliminate ownership of, control over, or rights to the insured investment. In addition to outright nationalization and confiscation, "creeping" expropriation—a series of acts that, over time, have an expropriatory effect—is also covered. Coverage is available on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets).


War, Terrorism, and Civil Disturbance

Protects against loss from, damage to, or the destruction or disappearance of, tangible assets or total business interruption (the total inability to conduct operations essential to a project’s overall financial viability) caused by politically motivated acts of war or civil disturbance in the country, including revolution, insurrection, coups d'état, sabotage, and terrorism.


Breach of Contract

Protects against losses arising from the government’s breach or repudiation of a contract with the investor (e.g., a concession or a power purchase agreement). Breach of contract coverage may be extended to the contractual obligations of state-owned enterprises in certain circumstances.


Non-Honoring of Financial Obligations

Protects against losses resulting from a failure of a sovereign, sub-sovereign, or state-owned enterprise to make a payment when due under an unconditional financial payment obligation or guarantee related to an eligible investment.


For more information about Types of Coverage of MIGA Investment Guarantees, click here.