Products - LAU offers the following coverages on behalf of Allied World Assurance Corporation Ltd. and its affiliates. LAU can currently offer limits of up to $25,000,000 per Obligor and for credit terms of up to five years.
- Non-payment coverage for short-term and medium-term exports to both private and public sector buyers. Policies can be written for one-off transactions and for multi-buyer programs.
- Pre-shipment covers to protect exporters with long lead times against the insolvency of their buyer.
- Non-payment and non-performance coverages in respect of advance payments and pre-financings of structured commodity trade and trade finance programs.
- Trade credit insurance facilities for importers. Policies can be written to cover both short and medium term imports and can be issued to one supplier or many different suppliers.
- Contract Repudiation Insurance against non-payment or wrongful termination of a foreign contract.
- Unfair Calling of Guarantee Cover.
For Financial Institutions
The coverages cited above have been adapted to serve the requirements of financial institutions. Coverages are available for:
- Non-payment for both short-term and medium-term exports to both private and public sector buyers.
- Structured commodity finance transactions.
- Letters of credit, buyer's credits, leases, and other traditional trade finance instruments.
- Lender's Interest covers for both project and investment assets which protect against the failure or inability of the borrower to repay the loan as a result of various political perils including:
- Expropriation, confiscation, nationalization and deprivation of the project.
- Breach of Contract.
- Non-honoring of an arbitration award by the host government.
- Political violence that prevents or frustrates the project.
- Exchange transfer and remittance difficulties.
- LAU will issue policies to financial institutions as both insureds and as loss payees.
- Permanent Investments -
Coverage is available for companies investing in foreign markets against confiscation, expropriation, nationalization or deprivation; loss caused by forced abandonment, forced divestiture, war, riots and civil commotion; and the risk of inability to convert and transfer earnings or principal from the investment.
- Mobile Assets -
Cover for mobile assets such as vehicles, plant and machinery, stocks of commodities etc caused by loss due to perils as outlined above for permanent investments.