Policies insure 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. Coverage for pre- and post-shipment risks can be combined in one policy. Private Buyer coverage does not generally include contract repudiation.
- Non-cancelable limits during the policy period
- Up to 90% coverage
- Tenor of up to seven years
- Minimum premium of $20,000