Performance Security Insurance

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