Cover stories

Contract Frustration

Markel has the capability to underwrite and issue policies using its Company and Lloyd's platforms giving us access to licences across the globe. The local underwriting teams in the UK, Germany & Singapore provide local time zone access and accommodate geographical location and licensing requirements.

We offer non-cancellable coverage with bespoke policy wordings to match client’s risk strategy and business goals.

Capacity:
  • Max limit - USD 20 million per risk
  • Max tenor - 60 months
Coverage:
  • Pre & post-shipment
  • Non-payment
  • License cancellation
  • Import and export embargo
  • Unfair and fair calling of advance payment and performance guarantees  
What is Contract Frustration coverage:  

Contract Frustration is also referred to as Public Buyer Default. CF policies insure against pre-shipment, post-shipment & non-delivery risks. Risks are covered in respect of contracts with sovereign entities & government-owned obligors including central governments, ministries and government agencies. Pre-shipment risks include import or export embargo; buyer's country frustration of the contract; war and political violence; contract repudiation and failure to honour an arbitration award; Post-shipment risks include nonpayment, import & export license cancellation amongst other perils. Policies can be structured to provide cover against non-delivery of contracted goods by government-owned suppliers, followed by a failure to return/repay the insured’s advance payment.