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 Glossaryworking 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 Glossaryworking 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

GlossaryWorking 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 Glossaryworking capital insurance, SERV does not usually charge a review premium. Nor are there any surcharges for insurance policies in foreign currencies. The premium for Glossaryworking capital insurance is set off against the premium for Glossarypre-shipment risk insurance.

GlossaryWorking capital insurance is only issued in connection with Glossarysupplier credit insurance or, at a minimum, with Glossarypre-shipment risk insurance. The financial institution has the option of combining this with Glossarybuyer credit insurance.