Policy documents

The general terms and conditions document is your main policy document. It outlines your coverage details, including your duties, obligations, exclusions, loss calculations and definitions. The following areas are of key importance:

a. What is not covered

1. Disputes: If an amount owing is in dispute between you and your buyer, it is not covered until the dispute is settled and a loss amount can be clearly established.
2. Documentation risk: It is your responsibility to ensure that your sales contracts and any other supporting documents are legally valid, binding and enforceable. If they are not, the resulting documentation risks are not covered.
3. Sales to related buyers: Sales made to buyers who are related to your company are not covered. See definition in the policy.
4. Currency devaluation: Losses incurred as a result of a currency devaluation are not covered.

b. Policy exclusions   

Your policy has standard exclusions that specify situations in which the Insurer is not liable for a claim payment. Some of the key exclusions are as follows:

• You changed the payment terms with your buyer.
• You did not receive the down payment from the buyer if and as required in your contract.
• When the goods were shipped, your buyer was already in default of payment obligations to you for a period longer than permitted in your policy.
• When the goods were shipped, you or your buyer did not have all the required permits, certificates, licenses or other approvals to perform the contract.
• Your sales were insured under another insurance policy.

Please consult your policy documents for full details and additional exclusions.

c. Duties and obligations as a policyholder

Your duties and obligations include:

• Paying required premium and fees
• Declaring your actual insured sales (if required by your policy) 
• Notifying us of any event that may cause a loss
• Reporting overdues
• Preventing and minimizing losses
• Assisting in recovery efforts
• Reporting and remitting any recoveries to EDC