EDC — Performance Security Insurance ### 📋 Eligible Entities - Canadian exporters and businesses engaged in international trade - Small, medium, and large enterprises (SMEs and corporations) - Businesses seeking to bid on or secure international contracts - Companies operating in any sector with export or international operations - Sole proprietors and partnerships involved in cross-border business activities - Businesses that require performance bonds or letters of guarantee for international transactions ### 💰 Funding Details - Coverage Level: Up to 95% of insured losses - Product Type: Insurance coverage (not a grant or loan requiring repayment) - Premium Structure: Client pays insurance premiums to EDC; no repayment of coverage required if claim is legitimate - No Matching Requirement: EDC covers the insured percentage; business responsible for remaining uninsured portion - Claims Payment: EDC reimburses covered losses directly when valid claims are triggered - Cost: Premiums vary based on risk assessment, contract value, and customer creditworthiness ### 🛠️ Approved Expenses This is insurance coverage for the following situations: - Customer wrongful calls on letters of guarantee or performance bonds - Political risk events preventing your ability to meet contractual obligations, including: - Government actions or political instability in customer's country - Currency inconvertibility or transfer restrictions - War, civil unrest, or expropriation - Contract repudiation by foreign government entities - Cash flow protection when performance security is called unfairly or due to insurable political events - Contract fulfillment costs when claims are covered under policy terms ### ⚠️ Conditions & Milestones - Underwriting Process: EDC conducts risk assessment of the buyer/customer and contract terms - Policy Limits: Coverage subject to EDC's underwriting guidelines and maximum limits per transaction - Customer Creditworthiness: EDC evaluates the foreign buyer's ability and willingness to pay - Contract Documentation: Proof of valid international contract, letter of guarantee, or performance bond required - Claim Requirements: Claimant must demonstrate the call was wrongful or that political