Emerging markets often provide the strongest growth opportunities for banks, traders and manufacturers. In recent years, it has again become evident that emerging markets which appear stable one day can suddenly face political unrest. The inability to honor a contract due to political or economic instability cannot be predicted with any certainty, and volatility continues to affect countries globally.
Summary of Coverage
Contract frustration cover protects a policyholder against cancellation of a fixed contract for both pre- and post-delivery risks. Pre-delivery contract frustration events may include but are not limited to political violence and war, embargo, operating license cancellation or failure to honor an arbitration award. Pre-delivery coverage may be expanded to include the fair or unfair call of a performance, warranty or down payment bond. The bond typically takes the form of a letter of credit posted by a financial institution for the benefit of the obligor. Following delivery, post-shipment non-payment coverage in the form of insolvency or protracted default is also available for both private and public obligors.
- US$50 million maximum line for any one risk
- Admitted in all 50 states
- Worldwide scope
- Responsiveness of a dual underwriting platform with experts in London and New York
- Emphasis on building a customer relationship and a long-term partnership
- Superior claims management processing and customer service