Working capital insurance

If a financial institution grants an exporter a loan to finance the prime costs of an export transaction, the financial institution can take out working capital insurance from SERV. The financed export generally has to be insured with SERV, too.

The insurance covers the financial institution’s claims for repayment from the exporter or its subcontractors under the working capital loan agreement. SERV indemnifies the financial institution if the exporter becomes insolvent during the credit period or fails to make the instalment payments on time.

  • Cover Ratio: 80%, cover up to 95% is possible in justified, exceptional cases.

Product Details


With working capital insurance, SERV insures a financial institution’s repayment claims against an exporter arising from a working capital loan for an export transaction insured with SERV. The cover provided by SERV usually allows a less costly form of financing, obviates the need for further collateral and thus preserves the company’s liquidity. 

The working capital loan may only be used to finance the prime costs of a specific export transaction insured with SERV.

Object of cover

Working capital insurance covers the following claims from a credit contract:

  • principal claims of the financial institution to the repayment of disbursed working capital amounts
  • claims to reimbursement for ancillary financing costs (including the SERV premium)
  • interest receivable until the due date
  • default interest during the waiting period
  • prepayment penalty (“breakage costs”, costs incurred on the early repayment of a loan)

Claims for damages, contract penalties, compound interest and currency losses are excluded from the insurance.

Insurable risk

The insurance covers the risk that the borrower of a working capital loan (exporter or subcontractor) will not repay the working capital loan, due to insolvency or unwillingness to pay.

Period of insurance


From the disbursement of the loan until its repayment.

Special provisions

In the case of working capital insurance, SERV does not usually charge a review premium. Nor are there any surcharges for insurance policies in foreign currencies. The premium for working capital insurance is set off against the premium for pre-shipment risk insurance.

Working capital insurance is only issued in connection with supplier credit insurance or, at a minimum, with pre-shipment risk insurance. The financial institution has the option of combining this with buyer credit insurance.