Exports

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We can arrange cover for short or medium-term exports involving consumer goods, light or heavy machinery (whether new or used), construction works, services and trading activities.

There are three core covers:

Contract frustration cover – this relates to production risk prior to delivery.  It covers the excess of expenditure over income that results from a temporary or permanent breach of contract.  It applies when:

  • a public buyer decides to terminate a contract or refuses to honour it
  • a private buyer terminates or refuses to honour the contract due to a political event or decision that has occurred in his country, the country of the insured or another country.

Non-payment/Non-transfer – this cover protects the business if invoices not paid or partially paid following delivery, provided the amounts have been previously deposited in local currency.  It applies when:

  • a public debtor does not honour his payment commitments or an enforceable court ruling is made in favour of the insured
  • a private debtor does not pay amounts owed because he is directly and exclusively prevented from meeting his contractual obligations by a political event or decision that has occurred in his country, the country of the insured or another country
  • a public or private debtor cannot transfer amounts owed because a legislative or administrative measure enacted in his country pursuant to a financial crisis results in the inconvertibility of local currency or prohibits or delays transfer.

Unfair calling of bonds - this cover applies to all types of bonds issued in connection with export contracts, including bid bonds, advance payment bonds, retention bonds and performance bonds.  Cover may be contracted for one or more bonds and applies when:

  • the bond is wrongfully called by a public beneficiary
  • the bond is called as the result of an event in the country in which the contract is being performed
  • the bond is called as a result of a political decision taken in the country in which the activity is being carried out, in the country of the insured or in another country and prevents the insured from signing the contract (bid bond) or performing it (other types of bonds).

 

 

Perkins Slade is authorised and regulated by the Financial Services Authority No. 302886.

Perkins Slade Limited is registered at Companies House in England and Wales under Company Number 969374.

Registered Office: 3 Broadway, Broad Street, Birmingham, UK, B15 1BQ.


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