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Protect your cash flow with Performance Security Insurance

We’ll cover 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if a call is triggered by you not being able to meet your obligations due to specific political risks.

Insure yourself in case of a wrongful call with Performance Security Insurance

Eligibility is determined by EDC based on:

  • review of the letter of guarantee
  • conditions and economic outlook in your customer’s country, and the customer’s profile

Commercial risks:

  • wrongful call of the bank instrument by the counterparty, as determined by the terms and conditions of a signed contract or bid process
  • excessive call of the bank instrument by the counterparty in an amount that exceeds what the counterparty is legally entitled to receive as a result of the customer’s non-performance under the contract

 

Political risks:

Rightful call of the bank instrument by the counterparty due to the customer’s non-performance under the contract as a result of:

  • war and related disturbances
  • cancellation or non-renewal of an export permit or import permit
  • government action subsequent to the date of issuance of the policy. including an action that prevented, restricted, or controlled any payment due to or payable by the customer with respect to the contract
  • occurrence outside of Canada of any act of God
  • amounts relating to unresolved commercial disputes between the customer and the counterparty


 

Still have questions about Performance Security Insurance?

Please contact us weekdays between 9 a.m. and 5 p.m. ET.

1-800-229-0575

Or send us a question and we’ll get back to you as soon as possible. Send a question.

Date modified: 2017-09-28