INSURANCE

CONTRACT FRUSTRATION INSURANCE

Safeguarding You from Risk

Contract Frustration insurance is a policy business that is intended to provide the insured with risk guarantee when they suffer economic losses because of war, currency exchange ban, requisition, or breach of contract by the government or the related party in countries where the insured have made investments. It is designed to support and promote the investors in making overseas investments.

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Contract Frustration

Contract frustration insurance is a form of financial guarantee. Such insurance indemnifies an insured for loss under:

  • a specified contract or contracts for the sale, purchase, lease or delivery of assets, goods or services; or
  • an agreement which relates directly to the financing of such specified contract(s); or
  • an agreement concerning financing which is secured against assets, goods or services and/or payment for assets, goods or services due under a specified contract or contracts, or where repayment is to be effected by the sale or receipts of such goods or services, or assets, royalties or other specified receivables; or
  • a bond, or bonds, provided in accordance with the terms of a specified contract, tender document or project.

Losses must be directly due to a political force majeure event (e.g., strikes, civil war or invasion) and/or an event resulting from the action of a supra-natural authority or government entity.
The risk location is the territory in which the insured’s business is established.
If more than one business establishment is covered, then each may individually create a risk location.

Trade Credit

Trade credit insurance covers a business for losses arising from the failure of debtors to pay their debts.
The risk location is the territory in which the insured’s business is established.
If more than one business establishment is covered, then each may individually create a risk location.

Business Interruption

Business interruption insurance covers lost income due to an event that impedes the operations of a business.
The risk location is the territory in which the insured’s business is established.
If more than one business establishment is covered, then each may individually create a risk location.
However where business interruption is written as part of a property package, the risk location is determined by the territory in which the insured property is situated.

Event Cancellation

Event cancellation insurance covers financial losses incurred if an event is cancelled due to non-appearance, damage to venue, bad weather, strikes or other causes.
The risk location is normally the territory in which the insured is resident or its business establishment is situated.

Miscellaneous financial loss

Miscellaneous financial loss insurance covers a wide range of financial loss insurances.
The risk location is normally the territory in which the insured is resident or its business establishment is situated.
If the contract covers more than one individual insured or business establishment and these are situated, in more than one territory, each resident or establishment location will create a separate risk location.

For further details on business insurance cover, contact our support staff.

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