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Performance Security Insurance

Foreign buyers often ask for a guarantee - assurance that you’ll perform to the stipulations of your contract. Performance Security Insurance (PSI) can cover up to 95 per cent of losses if your foreign customer demands payment on a bank-issued guarantee without a valid reason.

  • Protect yourself from the expense of a wrongfully called performance guarantee.
  • Free up your cash knowing you won’t have to pay to reimburse your bank if your bond is called without reason.

Bonds: a fact of international business

If a guarantee that your bank issued on your behalf is called for no valid reason, you will have to come up with funds to reimburse the financial institution. Depending on the type of guarantee, our PSI insurance could help protect you from having to reimburse this amount.

Qualification

In evaluating applications, we consider a number of criteria, including:

  • acceptable contract terms;
  • acceptable guarantee instruments;
  • your foreign customer’s profile and both current and future economic conditions in their country;
  • acceptable Canadian exports of goods and services; and
  • benefits to Canada derived from your export activity.

Cost

Pricing is based on a number of factors including policy liability, length of policy and, customer and country morality risks.

Learn more

View our detailed product brochure (PDF)

• Call 1-800-229-0575 weekdays 9 am to 5 pm EST

Submit a question

Compare solutions

Use our Application Forms to apply

Download an Application form (PDF)

Download an Application form (MS Word)

Customer Profile and Consent Form (PDF)

Customer Profile and Consent Form (MS Word)

Important Information
The above information describes, in general, EDC services and is not a commitment to provide them. Only the documentation supplied by EDC, in connection with any transaction, provides the full detail and terms and conditions.

Working on a new contract?

Call 1-800-229-0575 weekdays,
9 am to 5 pm EST

Submit a question

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