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Loss and Indemnification

Important in the event of a loss

What needs to be done if a loss threatens?

The covered risk of a payment default is likely to materialise if your foreign debtor experiences financial difficulties and your invoice remains unpaid. In order to guarantee a smooth loss settlement, it is recommended to contact us in good time. We will be pleased to assist you and discuss and agree the necessary steps with you. 

Don't worry - we'll be with you every step of the way.

If a loss is imminent, should be reduced or avoided, talk to us or write us an e-mail:
Duty to report an increase of risk

Please notify us without delay in writing of any circumstances that are likely to result in a payment default (e. g. delay in payment, a request for extension of the payment period and a deterioration of the financial situation). Please also inform us of the steps you have already taken and/or intend to take to recover the debts. 

Duty to obtain approval before making further deliveries

If you intend to make further shipments to the foreign debtor despite the existence of risk-aggravating factors, you require the prior written approval of the Federal Government. 

Duty to prevent or mitigate losses

Please initiate all appropriate measures to prevent or minimise a loss and, in doing so, proceed with all the due and reasonable care dictated by sound business practice. 

Duty to obtain approval of extended payment periods

If you file a claim for indemnification, this will result in the suspension of cover. If, alternatively, you wish to agree a repayment plan with new maturities (prolongation) with your foreign buyer in order to prevent a loss, this usually requires the approval of the Federal Government. 

Your contacts

Please do not hesitate to contact us.
Dr. Ullrich Ehrenberg
Claims - Special cover, Project finance and Manufactoring Risk Cover
Nicola Kruse
Claims - Commercial Claims
Birgitt Lauryn
Claims - Recovery
Folko Wohlang
Claims - Restructuring
Infographic: Requirements for a claim

Preconditions for filing a claim for indemnification

If a loss occurs, you can file a claim for indemnification. The preconditions for filing a claim are that

  • cover exists
  • accounts receivable are uncollectable / (where applicable) security interest cannot be enforced
  • the legal validity of the claim to payment is proven
  • the occurrence of an event of loss is proven
  • you perform the duties incumbent on you


Please do not hesitate to contact our experts if you have any questions so that your bad debt loss can be rapidly settled.

What types of events of loss exist?

Commercial loss

In the case of a commercial loss, the reason for the payment default is to be found in the sphere of the foreign buyer, for example, because of


  • events defines as insolvency, such as bankruptcy, a composition settlement in or out of court, unsuccessful judgement of execution
  • protracted default persisting for more than six months in connection with Wholeturnover Policies and supplier credits or one month in connection with buyer credits


Once the indemnification has been paid, the claim passes to the Federal Government up to the indemnified amount. The exporter remains bound to continue enforcing the claim for payment in accordance with the instructions of the Federal Government. Where prior agreement has been reached, the Federal Government will share the legal costs incurred. We will be pleased to assist you with choosing the institutions to be retained in order to enforce the claim.

Political loss

In the case of a political loss, the reason for the payment default is to be found in the sphere of the country in which the foreign buyer is domiciled, for example, because of


  • general legislative or administrative acts (e. g. freezing of payments, payment moratorium, debt rescheduling)
  • warlike events, riots or revolution in the buyer country
  • non-conversion, non-transfer of amounts deposited abroad


A political event of loss is deemed to have occurred if and when the Federal Government acknowledges the political event that caused the payment default in respect of the country concerned. In most cases, legislative or administrative measures are the cause of loss. In such cases, it may take longer until a political event of loss is recognised. In the meantime, the case will be treated as commercial loss.