Promise of Cover

With a promise of cover Atradius, offers you security already during the negotiating stage.

Already during the negotiations with regard to the delivery of capital goods or the execution of construction projects, you may want to know whether, and if so, under what terms Atradius is prepared to cover the non-payment risks of the transaction. This may also be useful during your negotiations with banks.

Commitment to insurance

A promise of cover will give you security. Atradius will issue what is referred to as a promise of cover, whereby Atradius undertakes to provide cover if the export contract comes into effect within the preagreed period. This period is a maximum of six months. After expiry of the agreed period Atradius will examine, on request, if there are possibilities for an extended period of six months. Atradius may, of course, attach further conditions in case of an extension.

Terms

If there is a significant deterioration of the risk, Atradius may withdraw its promise of cover. You are, on the other hand, also obliged to accept the insurance if the transaction goes into effect. This may also apply to terms that have improved in comparison with the moment they were imposed in the promise of cover. If during negotiations the contract terms deteriorate, you should contact Atradius. We will once again review the promise of cover.

Atradius is for that matter very cautious about underwriting risks that have already commenced. It is therefore advisable to submit an application for insurance well before the contract goes into effect.

Advice of cover

For most countries Atradius sets a credit ceiling by mutual agreement with the Dutch Ministry of Finance. This ceiling represents the maximum exposure of Atradius on individual countries.

In cases in which there is no or insufficient capacity under the credit ceiling of the country concerned, Atradius may issue advises of cover. An advice of cover differs from a promise of cover in that it is subject to the condition that cover can only be provided if there is sufficient capacity under the country ceiling.

The application has been assessed on all other aspects of the cover. For Atradius the advice of cover is not binding and it will therefore not be included as a commitment under the country ceiling. As soon as an advice of cover situation applies, the current promises of cover may be extended for one period only. If there is a request for another extension, then the promise of cover will be converted into an advice of cover.

Upon request, an advice of cover can be converted into a policy if:

• there is sufficient capacity under the country ceiling

• the transaction has been reassessed and has not resulted in any other credit insurance objections

Once the available capacity under the country ceiling exceeds the total amount represented in the advises of cover, then all of these advises of cover may be converted into promises of cover after they have been reassessed. Atradius will then have committed itself once again, because a promise of cover is binding.

Costs

Atradius will not charge premium for a promise of cover or an advice of cover, but will charge a fee. The fee as mentioned in the promise of cover is 0,05% of the maximum compensation with a minimum of EUR 150 and a maximum of EUR 1,500. For a complete overview of our fees and costs, please click the link tariffs.