Pre-shipment risk cover
Insurance of production costs (prime costs) incurred during export business.
Insurable risks:
- Government measures and wartime events considered foreign political risks.
- Embargos imposed by Switzerland or third countries participating in the export business.
- Insolvency of the foreign purchasing/ordering party.
- Withdrawal from contract and non-payment of cancellation costs or severe infringement of contract by the foreign debtor.
The insured percentage is generally standardized to 95 percent in such cases.
Version: 14.11.2008