Coverage of loss that occurs when import restrictions imposed by the government
of the buyer's country or an export embargo in the seller's country
frustrates an overseas contract. Similarly, should a contract include goods
manufactured in a third country, substantial additional costs might be incurred
if export restrictions were imposed in the subcontractor's country; or, in
circumstances where subcontracted goods were being imported into the main
contractor's country, an import embargo on such goods may be imposed. It is
possible to cover losses incurred when contracts are frustrated in this way by
means of an export/import embargo indemnity.