Specialty Covers: Contracts

Product offerings : 

  • Contract Frustration

  • Government Obligor

  • Private Obligor

  • On-Demand Bonds

  • Non-Delivery Coverage

Cover highlights:

  • Comprehensive Commercial & Political Risks Coverage

  • 90% Indemnity Cover

  • Non-Cancellable Credit Limits

  • Flexible tenors upto 7 years 

Contract Frustration:

Contract Frustration Policies provide coverage for losses on contracts with foreign entities, either government or privately owned. E.g. breach of power purchase agreements, payment default by a government buyer etc.

 

Government Obligor / Public Buyer : 

The policy insures pre-shipment and/or post-shipment risks on contracts with a Government-Owned Entity (Public Buyer Default Cover).  Pre-shipment risks include import or export embargo; buyer's country frustration of the contract; war and political violence; contract repudiation and failure to honor an arbitration award. Post-shipment risks include nonpayment or failure to honor a letter of credit. Policies can be structured to provide cover against non-delivery of contracted goods by government-owned suppliers, followed by a failure to return/repay the insured’s advance payment.

 

Private Obligor: 

The insurance covers contracts with a private obligor against pre-shipment political risks and insolvency, and/or post-shipment nonpayment. Pre-shipment risks include import or export embargo; buyer's country frustration of the contract; war and political violence; and insolvency of the buyer. Post-shipment risks can include insolvency or nonpayment by the buyer or nonpayment of a letter of credit.  

On-Demand Bonds: 

As a part of Contract Frustration Insurance, this policy insures fair and unfair calling of bid, advance payment or performance bonds related to trade transactions. Coverage is structured on both government-owned (fair/unfair calling) and private obligors (fair calling for specified political risks only).

 

Non-Delivery Coverage: 

The policy insures against risk of non-delivery of contracted goods by government-owned or private suppliers followed by a failure to return/repay the insured's advance payment.

Let's start a dialogue ! Write to us : TCI@prudence-UK.com ; TCI@prudence-USA.com

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PRUDENCE INSURANCE BROKERS LLC., U.S.A. - Authorized & regulated by California Department of Insurance, U.S.A.