Political Default(Confiscation/Expropriation/Nationalization, Transfer Risk, Arbitrary Host Government Action, Civil Unrest, Foreign Crisis)
NOTE: Disputes and/or Contract Cancellation ARE NOT COVERED.
A General Overview of the Basic Policy Types (other terms/conditions may apply)
Standard Short-term Multi-Buyer Policy covers multiple sales to multiple buyers in multiple countries on a short-term basis (up to 180 days - exceptionally 360); 12 month coverage period; annual primary loss may apply; reasonable spread of risk expected; premium rates based on country/buyer risk, and exporter experience; coverage 90% to 100%; assignable.
Standard Short-term Single Buyer Policy covers sales to a single buyer on a short-term basis; 12 month coverage period; covers one or more shipments; premium rate schedule (Exim) negotiated rates (private sector); minimum advance premium payments may apply; no primary loss required; assignable.
Standard Medium-term Policy issued by Exim covers sales up to $10 Million to a single buyer on terms of up to 5 years (exceptionally 7 years); typically requires a 15% down payment (other restrictions and requirements may apply); 100% coverage of principal and interest on 85% of U.S. export value. Exim's Guarantee Program provides cover for amounts in excess of $10 Million.
Private sector insurers such as Zurich also support medium-term exposures with commercial perils covered under a comprehensive policy for a 2 to 3 year period, with Political Risk Insurance (PRI) available for longer periods.