Imports
Imports can be at risk from non-delivery of products or services and sudden breach of contract by the supplier. In both cases, it can be difficult for the importer or trader to secure a refund of any payments made in advance.
Where losses are caused by an arbitrary decision of a public supplier or by political events or measures that prevent a private supplier from fulfilling his contract commitments, two types of cover apply:
Non-delivery of products or services – this cover protects the client from the credit risk of a supplier who does not make deliveries as defined in the contract. It covers the non-reimbursement of advance payments made by the insured in any form and applies when:
- a public supplier does not make the product deliveries he has undertaken to make
- a private supplier cannot deliver the expected products due to an event or other political decision that occurred in his country, the country of the insured or another country.
Contract termination – this cover protects the company from the credit risk of a supplier who suspends or permanently terminates a contract. It covers the excess invoices paid under the supply contract where the company cannot obtain a reimbursement or financial compensation for amounts already paid.
The cover applies when:
- a public supplier terminates or refuses to honour the contract
- a private supplier terminates or refuses to honour the contract due to a political event or decision taken in his country, the country of the insured, or another country.
To supplement this cover, we can arrange insurance to protect against non-performance and contract termination resulting from the direct default by a private supplier. The importer or trader may also take out cover against the risk of confiscation of products, inventories or equipment while these are in his possession, either in the country of the project or in another country, during transit.
Contact
Sally Del Principe
0121 698 8029
s.delprincipe@perkins-slade.com
