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See our Ad in the June 2005 BAFT Newsletter.
Product dispute, trade dispute, supplier performance risk—call it what you will—is a major concern of every trade financier. Credit insurers, not being in the business of resolving commercial disputes, have always excluded this risk from coverage, forcing both the seller and the buyer to resolve any dispute that may arise between them, typically resulting from the buyer’s unwillingness or inability to pay. As a result, financial institutions have found it necessary to take specific measures to mitigate repayment risk, including increased collateral requirements and/or reduced advance rates and higher pricing.
Now, we have a solution in the form of a special policy underwritten by a major AA-rated insurance company. “Specification Compliance Insurance” (SCI), provided as an extension to an All-Risk marine cargo policy, insures lenders against the risk that goods may be found, up to 60 days after arrival, to be out of compliance with the purchase contract, resulting in buyer refusal to pay. It also covers order cancellation while the goods are in transit. This policy was created by James Boyd, President of Boyd International Consultants Inc., who holds the product’s proprietary rights.
The brokers who offer this coverage exclusively are Structured Trade Services, LLC for the USA and Unison Insurance International for Canada and the rest of the world.
Structured Trade Services (STS) based in Houston, Texas is a leading trade credit and political risk insurance broker and trade finance arranger with many years of experience in this field. Its portfolio includes commercial banks and corporate clients engaged in foreign and domestic trade.
Unison International (UI) based in Mississauga, Ontario, Canada is an insurance broker dealing exclusively with Marine Insurance including Specification Compliance coverage, and is a wholly owned subsidiary of Unison Insurance and Financial Services Inc., a full service insurance broker providing counseling and services to individuals, businesses and purchase groups.
For further information on this unique product, please contact:
For the USA:
Michael Hosny at STS
phone: 713-552-0400
e-mail: hosny@structuredtrade.com
For Canada and the Rest of the World:
Bill Carser at UI
phone: 905-624-5300
e-mail: bcarser@unisonins.com
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