Object of cover
Pre-shipment risk insurance covers the following prime costs:
- The prime costs incurred in the company itself for the supplied goods and services agreed in the export contract
- Costs for deliveries (based on the subcontractor’s contract price)
- Prime costs for the termination of currency hedging transactions (if additionally applied for)
If the foreign buyer prematurely terminates the contract, claims to the payment of cancellation costs are generally covered if this has been agreed in the export contract or the exporter is entitled to them by law. Prime costs are the individual costs and overheads necessary under efficient business management for the provision of the agreed goods and services and that can be directly attributed to the insured export transaction. The insured prime costs do not include imputed profit, SERV premiums, claims for damages or contract penalties. The maximum amount to be insured is limited to the value of the export contract.
Period of insurance
SERV cover starts on the effective date of the export contract. It ends with the shipment of the goods produced or upon the provision of the contractually agreed services. The relevant time is either the date when the goods are handed over to a haulage contractor, freight carrier or warehouse facility or, in the case of a service, on the commencement of the service.
Pre-shipment risk insurance may be limited to cover for nonrecyclable parts or, in the case of several production and delivery stages, to a peak risk.