Purpose

This insurance has been conceived for transactions where, in respect to an export contract, the Exporter is required to provide the foreign buyer or the authorities of the country of destination with a surety bond.

The policy protects the Exporter against the foreign contractor’s unfair calling of the bond.




Risks covered and maximum cover percentages

  • Commercial Risks: 99%
  • Political and Extraordinary Risks: 99%



Insurance Detail

  1. The exporter negotiates an export contract with his foreign client who requires that surety bonds (bid, advance payment, performance bonds, etc.) be issued in his favour.
  2. The exporter approaches CESCE for coverage of the risk of the importer’s unfair calling of the bond.
  3. The exporter instructs the bank to issue the bonds required.
  4. It could also approach a foreign bonding bank, which would issue them in favour of the importer.
  5. Once the export contract, the bonds and the exporter’s bond insurance have been formalised, the exporter starts to perform the export contract.
  6. In the event of the importer’s unfair calling (i.e., the exporter being in compliance with his contractual obligations) of any of the bonds insured, or where the calling of the bonds is due to any of the risks set forth under the policy, CESCE shall indemnify the exporter insured in the terms and for the amount established under the policy.

SPECIAL CASES

7. BENEFICIARY BANK: The exporter may specify a financing institution as the beneficiary of his rights to indemnity under the policy and so enhance his access to bank financing.




Contracting

ADVICE

1. The exporter discovers a business opportunity.

As soon as your company identifies a potential export operation requiring the provision of a surety bond, contact CESCE to find out about the possibilities of coverage.

2. The exporter asks for coverage under the Exporter’s Bond Insurance Policy:

To apply for coverage, fill in and e-mail the application form to cuentadelestado@cesce.es.


PROCESSING

3. CESCE processes the application and answers the exporter

CESCE considers the application. If coverage in the terms applied for is accepted, CESCE issues a binding proposal undertaking to cover the transactions in the terms approved. This proposal remains valid during a specific period of time. If coverage is not accepted in the terms requested, CESCE will inform the exporter of its decision in writing.

4. The exporter signs the conditions offered and forwards the documentation.

The exporter should accompany the insurance proposal duly signed in acceptance with a copy of the commercial contract or of the proforma invoice and the declaration of compliance with the OECD Antibribery Convention.


DECISION

5. CESCE sends the policy to the exporter.

Immediately upon receipt of the valid insurance proposal signed by the exporter and of the copy of the commercial contract or of the proforma invoice, CESCE forwards the insurance policy.

6. The exporter signs the policy and returns it to CESCE.

Requisite for the conclusion of the insurance contract.

The exporter returns CESCE the policy duly signed together with proof of premium payment.

7. The exporter settles premium.

Requisite for the conclusion of the insurance contract.

The exporter pays the premium in the amount and within the terms set forth under the policy.

8. CESCE formalises the policy and sends a copy to the exporter.

Requisite for the conclusion of the insurance contract.

After due processing CESCE signs the policy already signed by the insured and sends him a copy together with the premium receipt.



General Conditioning (Spanish version)


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