Also insurable are indirect contract bonds issued in favour of a guarantor. Commission and fees of the guarantor arising in connection with a contract bond are not insurable.
The insurance therefore covers the fair calling of the contract bond if the exporter cannot fulfil its obligations for political reasons abroad, as a result of an impairment of international payment transactions or due to force majeure and also the unfair calling of the contract bond.
Period of insurance
The insurance begins when the guarantee document is handed over to the beneficiary and ends on its surrender or expiry or when the exporter is released from the Counter guarantee by the institution issuing the guarantee. If the contract bond is unfairly called, insurance coverage ends on fulfilment of the claim to repayment.
Contract bond insurance may be supplemented by a counter guarantee. In this case SERV provides the financial institution issuing the guarantee with default cover on the exporter’s behalf (with a cover ratio of up to 100 %) so that the exporter can fulfil its obligations towards the financial institution if the guarantee is called (see product information on counter guarantees).