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Key features

Export Insurance Policy (EXIP)
This protects an exporter against not receiving payments to which it is contractually entitled under a capital goods contract, payable on cash or near cash terms, as a result of the occurrence of the following risks:

• the insolvency or extended default of the buyer (and any surety);
• political events outside the UK which prevent the transfer of contract payments to the UK or which give the buyer a valid discharge of the debt without paying the contractual debt;
• political action (including hostilities) outside the UK which prevents performance of the contract;
• the application of measures in the UK which prevent performance of the contract (eg the non-renewal of an export licence).

Bond Insurance Policy (BIP)
The BIP provides protection in the event of an on-demand contract bond being called unfairly and for fair (within terms of the bond) calls made as a result of political events. It is only available when ECGD is providing other support for a contract.

Overseas Investment Insurance (OII)
Investment Insurance provides cover for investments made in developing countries. This can be provided to either an exporter investing in an asset overseas (eg building a new factory) or to a bank providing a loan for eg the purchase of an overseas asset.

The insured events are as follows:

• expropriation;
• war;
• restrictions on the remittance to the UK of earnings or interest or the proceeds of liquidating the asset;
• breach of government undertakings given to the investor.

Extent of cover
The EXIP, BIP and OII all provide cover against loss arising from a list of specified events. Loss arising from any other cause is not insured.

Benefits

• A single source of insurance against a wide range of risks, commonly encountered, but outside the control of the exporter
• The ability to trade with territories previously considered too risky
• The ability to compete for contracts which require export credit support