Our insurance for construction work in countries outside the Netherlands is tailored to the practical needs of contractors and enterprises in the construction industry.
It covers the risk that your client will not pay you for the costs you have incurred in the event you are obliged to suspend work on a project, as well as for the risk that you will not receive payment or interest in full or within an acceptable period of time for approved certificates.
The client draws up a certificate based on the situation statement. This records the portion of the contract sum corresponding to the progress of the work. As soon as you receive this certificate, the client owes you the portion of the contract sum recorded in the certificate. The sum of all the certificates constitutes the final contract sum. Another specific feature of contracting work is the clearing of prepayment.
Are you performing work abroad? If so, you can get special contracting insurance. Contracting transactions are distinguished from capital goods transactions by a number of specific characteristics. For example, contracting work is generally agreed on the basis of a budgeted contract sum. During the execution of the work, you as the contractor periodically - usually monthly - make a situation statement summarizing the work performed in the period in question.
Because of the specific nature of contracting work, we offer a separate policy for insuring such contracts. First and foremost, the Contractor's Policy covers the risk that you will not be reimbursed for the costs you have incurred due to not all certificates being issued.
What risks does export insurance for contractors cover?
With the xport insurance for contractors you have the flexibility to choose which risks you want to cover. You can choose to cover only your payment risk (credit risk), insuring against non-payment after the work is delivered. You can also combine this with cover for the cost of delivery (manufacturing risk), protecting you against costs incurred if the work is stopped.
The cause of non-payment can vary:
- Political risks: These are risks such as war, natural disasters, or economic problems caused by the government in your customer's country.
- Commercial risks: These arise from financial problems at your client, such as bankruptcy or insolvency.
You can also choose to cover only political risks or only commercial risks, depending on your situation and the project.
Own risk
The covered percentage is also flexible. Usually it is between 90 and 98%. So you retain an excess of between 2 and 10% of the contract value. You may transfer this excess to another party, such as your bank or a supplier. Please ask our permission for this first.
Do you need financing for your project?
Your customer may ask for financing to pay for your activities. Here too Atradius Dutch State Business can help you. See below under Financing policy.
What if you don't get paid?
Notify us as soon as possible of a payment delay. Atradius Dutch State Business's claims and recovery team will then discuss with you the best way to resolve the claim threat. Should this not succeed within the waiting period (usually three months), you can file a claim with us.
Does your customer require guarantees?
Clients often request contractors to have their banks issue guarantees for projects. The most common of these are advance payment bonds, performance bonds, maintenance bonds and retention bonds. They must often be unconditional. This means they are easy to call, whether fairly or wrongfully. Another type of guarantee which a client will often require is a bid bond. Our bond cover insures you against the unfair calling of the bonds your bank has posted on your behalf. An additional benefit of our bond cover is that it frees up capacity under your credit facilities with your bank.
Protecting your tools and equipment
You may be using valuable equipment in the execution of your project. You may want to move it on to the next destination for a new project once your work is completed. Atradius Dutch State Business' equipment cover protects you against loss due to damage to your equipment from political causes such as disturbances or war. It also offers protection against loss due to inability to import, export or transit your equipment. This must be the result of, for example, the non-renewal of a permit or other measures taken by higher authorities in the country where the equipment is used.
What are the terms and conditions of export insurance for contractors?
To qualify for export insurance for contractors, companies must meet certain conditions, including:
- Minimum national content: At least 20% of the contract price must contain a national Dutch component, with at least 15% added value from the Netherlands.
- Insurance application and contract details: Companies must provide all necessary project and financial data in a timely manner, as well as a detailed description of the risks to be insured.
The insurance is applicable in different situations, including projects with variable contracts or when working with international partners. Companies must also consider waiting periods and any additional conditions for specific risks.
Indemnification
If you have a right of indemnity after the waiting period, we, on behalf of the Dutch state, will pay you the covered percentage of your unpaid invoice and any interest due. Claims are normally paid in euros. When we indemnify you for a loss covered by your insurance policy, we will assume the rights to the receivables concerned, including any related guarantees or collateral. We will then take measures to collect the amounts owed by your client. Any amounts we recover will be shared with you according to your portion of the risk.
