Structured Trade and Political Risk Insurance
Customised insurance solutions for overseas projects
Four good reasons to choose “Single Risk”
- Protection against risks that are specific to business abroad;
- Covers are tailor-made in terms of risk assessment, scope and cost;
- Customised, scalable individual policies;
- Multi-country, single- or multi-risk protection solutions.
From manufacturing to credit risks, and risks relating to the economic or political situation in a country, your sales of capital goods or services may require specific or one-off protection linked to a particular context, period, market, etc. Therefore, there could be a need to take out cover on a case-by-case basis for your business.Changing legislation, contract breaches, expropriation, nationalisation, armed conflict, labour unrest, acts of terrorism, etc. Because the world is unstable, Coface offers its “Single Risk” solution to companies and financial institutions exposed to commercial and political risks abroad.
“Structured Trade and Political Risk” revolves around five innovative contracts:
- Political Risk
- Export & Domestic
Delivering a valuable solution…
A manufacturer of industrial equipment is buying iron ore from a Chinese miner. The manufacturer advances the payment to be reimbursed through shipments over a 12-month period.
After 6 months, the Chinese government imposes a ban on iron ore exports to keep it for the domestic market, making it impossible for the Chinese miner to send its shipments.
Coface indemnifies the amount of advance payment not yet reimbursed by shipments, helping the company to minimize its loss.
A Singapore industrial company, specialising in bottling processing lines manufacturing, has signed a contract with a Thai beverage producer.
Coface issues a policy to cover the breach and interruption of the contract due to political and credit risks.
The beverage producer breaches its contract by announcing that it will not receive the equipment or pay for them because it has just gone insolvent.
As Coface covers 90% of the industrial company’s losses, all expenses incurred till the point of breach of contract less the sums already received, such as a downpayment, is indeminified.