Through this policy, Cesce covers Spanish companies that carry out construction contracts, projects, assemblies, etc., overseas.

This insurance policy is specially designed to provide cover to contractors carrying out civil works abroad.  Covered risks include payment default by the foreign client or an unilateral and unfair contract rescission. It also covers the inability to repatriate the cash sums deposited in financial institutions in the country where the works are being executed or the expropriation, seizure or similar of the contractor's machinery as well as its destruction as a result of political or catastrophic events.       

Who is the insured party? 

The Insured Party is the Spanish company that signs a contract for construction, works, assembly, or execution of works overseas.

Contract Rescission Risk

• Commercial: When the foreign contracting party is a private company, it covers the risk of improper termination of the works contract or non-performance by the foreign contracting party and its refusal to certify or accept the work carried out. 

• Political and extraordinary: The aforementioned cases apply when the foreign contractor is a public entity. It also applies to cases in which the works contract cannot be performed due to situations of political violence, catastrophic events, serious economic difficulties abroad, expropriation, nationalisation, measures adopted by the Spanish or foreign government, foreign government, etc.

Credit Risk 

• Commercial: total or partial non-payment of the price of the works contract or of the accepted certificates for a period of over three months, when the contracting party is a private entity, provided that there is no prior non-compliance by the contractor and the parties are not involved in a commercial dispute. 
• Political and extraordinary: economic loss or damage suffered by the insured party to the works contract in the event that the importer is a public entity, or, in the case of a private entity, when the cause of non-payment is due to any of the aforementioned situations of political risk. 

Working Capital Risk

It is the total or partial lack of transfer abroad of the cash amounts deposited by the Insured Party in financial entities of the country where the work contract is executed due to situations of political risk.

Cesce sets the price according to the individual characteristics of each transaction. 

The price is determined by the following elements 
•    The risk rating of the export destination country
•   The creditworthiness and trustworthiness of the foreign buyer (debtor)
•    The term of the insurance policy

Ask Cesce about the conditions and price of the insurance policy when you identify a possible sale and purchase transaction.

There are no limits (maximum or minimum) on the amount per transaction

The maximum coverage amount per transaction is determined by the amount of the contract signed between the Spanish company and the foreign contracting party, in accordance with the contractual and payment milestones established therein..

You need to send an application, which will be examined and analysed. 

• After receiving an application, Cesce analyses the risk associated with the requested coverage based on the information provided by the Insured Party.. 
• The risk analysis examines the creditworthiness of the foreign contracting party (debtor of the credit) or, where applicable, of the Guarantor. It also examines the feasibility of the contract and the capacity of the Exporter to perform the contract. It also examines the possible environmental impact while ensuring at all times that the transaction qualifies for coverage by the State in accordance with current regulations..  
• Once the risk has been analysed, the Company submits a proposal to the decision-making body (State Risk Commission). If approved, Cesce will issue a proposal of terms and conditions. If the Insured Party accepts the proposal, the coverage will be formalised once the parties have signed the Insurance Policy and the Insured Party has paid the premium..

If you are interested, please fill in and email the application form to [email protected].   

If you have any questions, please call +34 91 193 19 99 or send us your details, and we will contact you.