Commodity traders

BPL Global’s policies cover commodity traders for both counter-party risks and the political risks of trading and investing in emerging markets.

Pre-payment and tolling transactions bring with them risks of non-delivery and non-performance by the producer or processor. Non-delivery insurance provides effective protection against these risks, as well as the full range of associated political risks.

• Our policies can be structured for single contracts or as global facilities capable of providing coverage for a portfolio of transactions of a specified type with selected obligors.
• Tenors for non-delivery insurance can range from a few weeks to five years or more.

We also provide non-payment insurance for commodity traders selling goods on credit terms to both public sector and private sector customers.

• These policies are usually short term, as most tenors are only up to 180 days, though longer tenors are available if appropriate.
• Payment may be on open account or secured by either a payment undertaking or a letter of credit from a bank in the customer’s country.
• The ability to offer open account credit terms is a valuable competitive advantage when other traders are insisting on payment in advance or by letter of credit.

For traders with subsidiaries, production facilities or stocks in emerging markets we provide specialised investment insurance and mobile assets insurance.

• These flexible policies can be adapted as required to provide protection against political risks, such as confiscation, expropriation and nationalisation, and political violence risks, including insurrection and civil war, leading to the loss or abandonment of such investments or assets.