Trade, credit and political risk insurance

Protection for selected payment, investment and contractual risks. Bonds and credit enhancement are distinct arrangements, not ordinary policies reimbursing the business that buys them.

Start with the risk, then check how the cover is arranged. These examples illustrate possible losses, not promised claim outcomes.

Trade Credit Insurance

Addresses unpaid trading debts when approved customers become insolvent or fail to pay within specified terms, helping protect the seller's cash flow against eligible losses.

Illustrative example: A wholesaler supplies goods on credit, then its approved customer enters liquidation before paying.
Check the wording: Check approved buyer limits, overdue debt reporting, disputed invoices, waiting periods and the percentage of each loss retained.

Read the detailed Trade Credit Insurance guide

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Political Risk

Addresses selected losses from government actions or political events affecting overseas investments, assets or payments, such as expropriation, currency transfer restrictions or specified political violence.

Illustrative example: An overseas government prevents a business from transferring eligible investment proceeds out of the country.
Check the wording: Countries, insured interests and political events must be specified; sanctions and ordinary commercial losses can restrict cover.

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Contract Frustration

Specialist arrangement

Addresses financial loss when specified political or commercial events prevent an insured contract from being performed or paid, particularly in export and international project transactions.

Illustrative example: A new export prohibition prevents delivery under an insured contract after manufacturing costs have been incurred.
Check the wording: Identify insured counterparties, covered cancellation causes and manufacturing or payment stages; ordinary disagreements do not automatically qualify.

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Surety Bonds

Specialist arrangement

Provide a beneficiary with financial security for specified obligations, such as a contractor's performance, while the business obtaining the bond generally remains responsible for repayment.

Illustrative example: A project owner calls a performance bond after the contractor fails to meet specified obligations.
Check the wording: Review demand conditions, expiry and indemnities: the surety may recover payments and associated costs from the bonded business.

Read the detailed Surety Bonds guide

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Credit Enhancement

Specialist arrangement

Improves the credit support behind a transaction through structures such as guarantees, insurance or collateral; it is a financing objective rather than one standard insurance product.

Illustrative example: A lender accepts additional credit support to reduce its exposure to a borrower's failure to repay.
Check the wording: Establish whether the proposed structure is insurance, a guarantee or another financial arrangement, and who ultimately bears losses.

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Source material

These primary sources explain product structures, including some overseas examples. Australian terms and availability need checking; the links do not confirm a BFY arrangement with an insurer.

QBE Australia: trade credit overview
Chubb: political risk concepts (Canada)
Chubb: surety and repayment structures (US)

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Describe the operation or the loss you are worried about. We can confirm the next step and whether we can assist.

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