Commercial risk
Commercial payment risks arise in transactions of goods and services and provide cover against (suspected) insolvency.
Solvency includes bankruptcy, moratorium, a Judicial Settlement, Executory Seizure and Natural Persons Debt Relief Act.
A debtor becomes presumptively insolvent if no payment has been made 6 months after the due date of the invoice.
Political risk
With political risk, the cause of non-payment lies not with the debtor itself but with the country.We distinguish several political risks;
- Moratorium: a general moratorium declared by the government of the debtor country.
- Transfer risk: political events, economic difficulties, foreign exchange shortages or legal or administrative measures preventing or delaying the transfer of payments deposited by the debtor.
- Waiver of payment obligation: a generally binding measure releasing him from his payment obligation under the law of his country.
- War: the occurrence of war, revolution or riots. Excluded are top five countries (CHN, FRA, UK, RUS, USA)
- Natural disaster: a cyclone, flood, earthquake, volcanic eruption or tidal wave or other forms of natural disasters.
- Impossibility of contract execution: a measure or decision of a foreign government that makes the performance of the contract wholly or partly impossible.
- Withdrawal of export licence: the revocation or non-renewal of an export licence or the introduction of a law in your country prohibiting or restricting the export of goods.
- Government failure: the failure or refusal of a government debtor to perform any provision of the contract.
For all the above items, the moment of claim assessment will commence once the waiting period mentioned in the policy and, if applicable, in the country schedule, has expired.
