As a hedge provider (e.g. for commodities), EFIC’s Political Risk Insurance – Hedge Bank policy can cover you against financial loss incurred as a result of a hedge counterparty’s non-payment of amounts, or non-delivery of an agreed quantity, due under your hedge facility, where the sole and direct cause of the non-payment/delivery arises from any of the specified political events.

Typically the Hedge Bank policy is issued in conjunction with EFIC's Political Risk Insurance - Lenders policy where the facility underlying the Lenders policy requires hedging to be in place.

Features

• Cover is provided based on the insured’s determination and valuation of its projected peak exposure for the duration of the hedge facility. 
• An insured’s loss may be indemnified to a level of up to 100%.
• Policies are typically available for a term equal to the term of the hedge facility to be insured.

Terms and conditions

Terms and conditions will be negotiated during the application process.  Our guidelines provide an indication of typical requirements.