Contract Frustration
Key Features
- Cover for non-payment losses when performing contracts with foreign entities, either government or privately-owned
- Bespoke cover for a specified contract, purchases, lease or delivery of assets, goods or services abroad
- Protection against losses caused by Political Force Majeure, Government actions, defaults or inability to convert currency
- Acts as a financial guarantee to protect direct financing and operations
Contract Frustration insurance for contracts, projects and investments
If you are operating in a less stable region of the world, you and/or your financers may require a financial guarantee to protect your investment or trade flow in the case of frustration.
Contract Frustration insurance is designed to indemnify you should a specific contract covering goods, services, lease or property deals be disrupted due to political events outside of your control.
These would typically include terrorism, riots or civil disturbances; war, whether declared or not; strikes (usually excluding strikes which are specific to the site or the project company or any of its subcontractors) or change of law or regulation. Loss of support from a Government Entity involved in your contract would also be covered as would the inability to convert currency and/or exchange transfer.
Bespoke Contract Frustration policies
Each Contract Frustration policy we provide is written around your specific contract to help you manage operating risk and meet financing or contractual requirements. It is usually placed with Lloyd's of London.
Bellwood Prestbury can also organise bespoke cover to protect your Imports and Exports, Overseas Operations, Finance and Lending and Fixed Investments such as land and property from the risks of political upheaval and violence, anywhere in the world.