Traditional Line Insurance:
Generally limited to short term exposures to traditionally defined asset and/or liability risks and exposures.
Specialty Line Insurance:
- Property/Business Interruption
- Builder's Risk
- Marine Transit/Storage
- General Liability
Unique areas of coverage generally designed to focus on specific business, contract and/or financial risks; i.e.:
- Contingency Insurance; i.e. Financial Loss/Specifically Identified Risks & Exposures
- Trade Disruption; i.e. Financial Loss//Supply Chain Disruption
- Force Majeure: i.e. Financial Loss/Acts of God, Change in Law
- Efficacy Insurance; i.e. Financial Loss/Performance Risk
- Liquidated Damages; i.e. Financial Loss/Delay Risk
- Residual Value : i.e. Financial Loss/Asset Value
- Political Risk; i.e. Financial Loss/Political Perils
- Credit Insurance; i.e., Financial Loss/Commercial Default/Insolvency
Either guarantee or credit enhance the performance and/or debt service obligations of the borrower.
Banking & Finance:
- Monoline Insurance Providers: Financial Guarantees
- Govn't Sponsored Programs: ECAs, RDBs, Etc.
- Surety/Bond Providers: Bid/Performance Bond Guarantees
A successful financial structure and its pricing are generally secured on the balance of three (3) contributing and interrelated components:
- Perceived Risk
- Debt/Equity Ratio
In today’s market, Commercial & Investment Bankers now clearly acknowledge the need for supporting insurance /credit enhancement as a necessary compliment to their financial structures.