Provided by Credit Group

Contract Frustration

Tokio Marine HCC is a leading provider of contract frustration coverage.

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.

Best for

  • Manufacturers
  • Trading companies
  • Service providers
  • Wholesalers
  • Distributors
  • Financial institutions
  • Export credit agencies
  • Multilaterals
     

Highlights

  • Non-cancellable limits

  • Typically up to 90% indemnity but 95% is considered for sovereign "public" obligors

  • Tenor of up to seven years for private debtors and 10 years for sovereign "public" obligors

  • Coverage may be expanded to include post-shipment non-payment

 

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.

Get in touch
Jerome Swinscoe
Jerome Swinscoe

President, HCC Credit Group

Ed Ashton
Edward Ashton

Senior Underwriter - Credit Group

Brochure

BROCHURE

Credit & Political Risk

Money and politics are two volatile exposures that can have a big impact on your bottom line. Count on our political and credit policies to shield your business from unpredictable circumstances.

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Why choose Tokio Marine HCC?

Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance.

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