Benefits of SERV insurance
What does SERV do?
SERV insures Swiss exports against political risks and del credere risk (commercial risk). In other words, we give you, the exporter, the security of knowing that you will be paid for your goods and services. Moreover, our insurance and guarantees help you finance your export transactions and conserve your company's cash. We also advise you on key issues during transactions, including contract drafting.
How does SERV insurance benefit me?
- Security: SERV protects your company from default and reassures you that you will be paid for risky export orders. We insure exports that are not covered by private export credit insurers.
- Easier financing: If you have SERV insurance, banks will be more inclined to grant much-needed loans or guarantees for your exports. It is also easier to assign claims to your bank. That way, you can offer customers excellent financing terms and still receive your money immediately.
- Liquidity: If you take out SERV insurance, banks can give your company loans or guarantees without applying the full amount toward your credit limit. You can conserve cash and maintain the funds needed to accept new export orders.
- Advice: Our staff has a wealth of experience analysing country, bank and company risks and processing export transactions. They can be particularly helpful for exporters who are entering a new market or doing business with a new customer.
What phases in an export transaction can be covered by SERV insurance?
SERV's products protect your company at every stage of an export transaction: from submitting a bid to paying the last loan instalment (and even beyond for certain contract bonds).
What type of export can I insure with SERV?
SERV covers exports from all sectors: consumer and capital goods as well as services such as construction, maintenance and engineering projects or licence and know-how agreements. To learn more, see page 10 of our SERV Compact brochure.
What risks does SERV cover?
SERV covers the following risks:
- Political risks and transfer risks abroad
- Del credere risk (commercial risk)
- Force majeure risks if they cannot be insured at reasonable terms by private insurance carriers
What risks does SERV not cover?
Exports are exposed to various risks not covered by SERV, including transport or currency risks.
Does SERV insure exports to any country in the world?
Generally, yes. Keep in mind, however, that SERV is only allowed to supplement, not replace, the insurance available from private credit insurers (subsidiarity principle). SERV's products are primarily designed for exports to politically or economically unstable countries. We therefore have restrictions on short-term exports to core OECD countries. Furthermore, some countries have extraordinary risks that SERV cannot insure at all or can only insure on a case-by-case basis. If you want to insure an export to one of these countries, you should contact us as early as possible. Details about individual countries are available in the List of countries.
Does SERV offer 100% cover?
The maximum cover ratio for most SERV products is 95%. The policyholder is responsible for the remaining 5%.
How can SERV improve my company’s cash flow?
SERV has two products that prevent exports from failing due to the exporter’s lack of liquidity. The counter guarantee and working capital insurance protect your bank in case you, the exporter, fail to live up to your commitments. Your bank can then give you new loans or guarantees without applying the full amount toward your credit limit. This allows you to obtain the funding needed to accept new export orders.
How much does SERV insurance cost?
SERV does not charge minimum premiums. Therefore, you can also insure exports with a low contract value at reasonable rates. Premiums depend on various factors, including the destination country, contract value and the term of the export transaction, the creditworthiness of your customer or the guaranteeing foreign bank.
What is the difference between an insurance commitment in principle (ICP) and an insurance policy (IP)?
You can ask SERV for an insurance commitment in principle (ICP) before concluding an export contract (during the bidding phase). The ICP confirms that SERV will insure a transaction as required as long as the circumstances and legal position does not change substantially. The commitment is valid for six months and can be extended. We will convert the ICP to an insurance policy as soon as you are ready. The ICP is optional: If you already have a final export contract, we will issue an insurance policy right away.