Supplier credit insurance

Supplier credit insurance protects Swiss export companies against default on a cash or credit receivable for goods or services that were provided to a customer abroad. Exporters receive their money from SERV if an insured risk leads to non-payment.

Insurance is available for political, transfer, force majeure and del credere risk.

Maximum cover ratio: 95%

Product details supplier credit insurance

Details

Cover can also extend to the non-disbursement risk from a buyer credit with which the foreign buyer would like to settle the exporter’s claim.

Object of cover

Supplier credit insurance covers the following claims arising from an export contract:

cash or credit claims for goods/services supplied
claims for reimbursement of ancillary financing costs (including the SERV premium)
interest receivable until the due date
default interest (within the waiting period)
prepayment penalty (“breakage costs”, costs incurred on the early repayment of a loan)

In order to avoid any gaps in cover until the time a claim arises, prime costs incurred during the period of insurance are automatically covered by the supplier credit insurance. However, risks during the pre-shipment phase can only be insured with additional pre-shipment risk insurance on a prime costs basis.

Insurable risks

In the case of goods the period of insurance for supplier credit insurance starts when the goods are despatched; in the case of services the period of insurance starts on the commencement of the services. It generally ends on the payment of the insured claim. Export contract claims arising during this period are protected against the occurrence of the insured risk.

Terms and conditions of payment

In the case of a period of insurance of more than two years (per individual transaction), the terms and conditions of payment for the insured claim must conform with the consensus regulations for publicly supported export credits of the OECD as well as with the Export Credit Guidelines of the Berne Union.

Types of products for claims under 24 months

Supplier credit insurance – individual claim

In the case of an individual claim, SERV covers an individual claim arising from an export contract to be paid within 23 months (bullet payment). This type of cover cannot be revolving, i.e. recurrent.

Supplier credit insurance – limit

SERV insures the maximum outstanding balances with an orderer, also referred to as the limit, on the basis of one or more export contracts – this may also involve a framework agreement. This limit may be used on a revolving basis for further outstanding claims. Claims from supplied goods and services within the requested period of insurance are covered up to the amount of the maximum limit. Repayments create new capacity for claims from further goods or services supplied below the limit.

Supplier credit insurance – pro rata

SERV covers multiple (partial) claims arising directly from partial deliveries or services on the basis of an export contract. Each claim must have a term of less than 24 months. The claims may have different payment periods depending on the payment terms. This type of cover is often used with milestone payments.