EDC — Performance Security Insurance ### 📋 Eligible Entities - Canadian exporters and businesses engaged in international trade - Small, medium, and large enterprises (SMEs and larger corporations) - Businesses seeking to expand into new international markets - Companies that require performance bonds or letters of guarantee as part of export contracts - Businesses operating in sectors with exposure to political risk in foreign markets ### 💰 Funding Details - Coverage Level: 95% of insured losses - Structure: Insurance product (not a grant or loan) - Cost: Premium-based; applicants pay insurance premiums to EDC - Repayability: N/A – this is insurance protection, not borrowed funds - Claim Basis: EDC reimburses 95% of valid claims when performance security instruments are wrongfully called or triggered due to qualifying political risks - No matching requirement: EDC assumes the majority of risk; applicant pays premiums proportional to exposure ### 🛠️ Approved Expenses - Covered Events: - Wrongful calls on letters of guarantee - Performance bond calls triggered by political risks (e.g., currency inconvertibility, contract repudiation, civil unrest, sovereign default) - Contract frustration due to insurable political events in foreign markets - Indirect Support: - Enables businesses to bid on international contracts requiring performance guarantees - Facilitates market expansion by reducing financial risk of posting security instruments ### ⚠️ Conditions & Milestones - Political Risk Eligibility: Coverage applies only to losses caused by qualifying political risks, not commercial disputes or applicant default - Pre-Approval Required: Contracts and performance security instruments must be reviewed and approved by EDC before coverage applies - Premium Payment: Ongoing insurance premiums must be paid in full and on time - Documentation: Detailed contract documentation, performance guarantee terms, and loss evidence required for claim submission - Claim Timeline: Claims must be filed within specified timeframes after loss event; EDC investigates and verifies eligibility - Market Restrictions: Some countries or sectors may have limited or excluded coverage based on EDC risk assessments - Geographic Scope: