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No Need To Be Frustrated With Contract Frustration Insurance Outlined By Bill Voss

No Need to be Frustrated with Contract Frustration Insurance

Contact Bill Voss, Policyholder Attorney, for a free no obligation consultation about your commercial insurance problem.  Bill Voss has helped countless businesses get an edge up on their business claim and can help you as well.

When you enter into a contract with a party that is based in another country, you are aware that this type of transaction can be more risky than others. Lenders will be more wary to deal with you if they know that your expected income will be coming from overseas. To assure these lenders, you can get contract frustration insurance.

Here are some things you need to know about this type of insurance:

Contract frustration insurance covers your losses that may be caused by various commercial and political risks. Some insurance companies can cover up to 90% of your eligible losses.
This type of insurance can cover contract cancellations, especially when you have already commenced working on your customer’s order. You can be compensated for your contract value, including production that is still part of your inventory at the time of cancellation.

You are eligible to recoup your losses even if the frustration of the contract is caused by political unrest or hostilities in the country where your customer is based.

Contract frustration insurance compensates you for losses even if the government of your customer’s country does not allow it to pay debts outside the country. It also covers blocked or delayed transfer of funds and cancellation of export or import permits.

When you have a hard time pursuing your foreign customers for payments, you can proceed to make a claim on your contract frustration insurance and the insurance company can take over the collection of the debt.

When applying for contract frustration insurance, an insurance company will look at the value of your exports, terms of the contract, your export capabilities, the creditworthiness of your customer, and the economic and other conditions in your customer’s country.

The cost of premium for contract frustration insurance varies. It can depend on the following factors: policy liability, payment terms under your contract, the length of your policy and the risks assumed by the buyer.

When picking an insurance company that can provide you with this type of coverage, choose one that has an easy and simple claims process. Most insurance companies only require you to fill-up an application form to submit a claim, engage a collection agency or report a debt.

Contract frustration insurance is beneficial especially if you are just starting out in your business. It allows you to extend more flexible payment terms to your customers. It also protects your balance sheet and cash flow as it limits your losses from these foreign transactions. Finally, it gives you access to increased working capital because banks will be more confident when you have contract frustration insurance.

While most insurance companies only cover exporters of capital goods or services for this type of insurance, you can consult your insurer to see if other types of contracts can also be covered.

Contract frustration insurance can be issued for single contract coverage on a fully selective basis.

Bill Voss
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Aggressive Texas policyholder attorney that fights hard for his clients and won't stop until he wins
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The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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