Pecuniary means relating to money and pecuniary insurance covers businesses against purely financial losses (e.g. from fraud, legal expenses or business interruption) rather than physical damage to property.
- Commercial Crime
- Business Interruption
- Trade Credit (please refer to Specialty Risks)
It can be hard to fathom that your own staff might be stealing from you. Unfortunately, the truth is that it may be the most trusted and senior staff who have the knowledge to skirt round security and set up well-concealed fraud systems.
Your company faces the threat of fraud every day, not only from trusted employees but also from external, intrusive and unknown third parties. The failure to protect your assets adequately from criminal activities may have serious repercussions.
The coverage afforded by our arrangements provides our customers with security features which typically include:
- Comprehensive coverage for employee dishonesty, theft, computer crime, counterfeiting and forgery
- Broad definition of employee (including students, secondees, volunteers, temporary personnel and outside lawyers while performing services on your behalf), with losses by unidentified employees covered
- Coverage for money, securities or other property under the Insured’s care, custody and control
- Theft loss covered on premises or in transit
- Automatic cover for new subsidiaries and associated companies, and automatic run off for subsidiary or associated companies sold during the coverage period
- Standard worldwide jurisdiction offered
- Coverage for auditor’s fees or investigative costs (up to full policy limit) incurred in order to identify and quantify a loss
- Coverage for legal fees incurred for third party claims resulting from a covered loss
- Unlimited retroactive date offered as a standard coverage
- Ability to offer reinstatement of coverage
- Flexible discovery period option
- Ability to issue locally admitted policies in jurisdictions across Asia
Fraud is not just a one-off occurrence and companies may be subject to repeated attacks by their own employees or outsiders. Collusive fraud, in particular between company employees and suppliers, is on the rise. Crime is real, it is intrusive, it hurts and it is continually growing and evolving.
Buyers of certain goods and services look for written guarantees and demand that you as their business partner put up security when awarding a contract to you to be certain that it will be carried out according to their wishes. After all, it can turn out to be an expensive business if a contractor does not complete the work on time or fails to deliver badly needed components: precious time is lost, there are knock-on problems with payment and financial losses.
Under a bond your insurer assumes liability for you towards third parties for the most varied types of security – e.g. for your obligations as a contractor under construction and supply contracts. This can take the shape of bonds, guarantees or other kinds of surety.
In essence, this means that in the event of default by the contractor, usually as a result of insolvency, the Employer will be able to recover the necessary additional costs they incur from the Surety up to the level of the bond.
Especially in view of today’s long warranty periods, which add to the constraints on your financial flexibility, you are choosing a safe solution if you take the long view and decide for Euler Hermes bonding cover.
If your company bankers issue the guarantee in such a case it puts a strain on your credit line. The danger: the new contract you have just landed can endanger your liquidity before you know what is happening. Bonds and guarantees can help you to avoid this pitfall. They not only take the pressure off your credit volume with your bank, they give you more room for manoeuvre in financing and growing your business. Examples of the type of bonds we handle are:
- Security Bonds for Ship Agents
In connection with requirements by the Immigration & Checkpoint Authority
- Foreign Worker Bonds
In connection with requirements by the Singapore Ministry of Manpower
- Bid bonds
In connection with public works tenders, as security that you as the contractor the work is awarded to will actually sign the contract and will undertake to perform the work as contracted.
- Advance payment bonds
As security for the repayment of advance payments or payments made on account.
- Supply and service bonds
As security for the obligation you have taken on as contractor to supply goods and services up to the point at which the object is handed over or accepted.
- Performance bonds
To secure the supply of goods and the performance of services with or without a warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.
- Maintenance bonds
As security that any defects discovered during the warranty period. They also trigger the repayment of warranty retention money, thus providing immediate liquidity to you as the contractor.
If you supply goods or provide services in other countries, we can arrange bonds and guarantees in favour of your foreign clients, taking account of the different ways of doing business in every country.
Major, unforeseen events can be difficult to recover from. Your business may be unable to trade and income stops coming in. And the reality is that even when disaster strikes, overheads and costs (such as wages and rent) still need to be paid.
Business Interruption insurance provides protection for the consequential loss of revenue resulting from interruption of your business, caused by damage incurred by unforeseen events. Under the Business Interruption section, your business is covered for loss of gross revenue and increased expenses during the affected period, including such costs as:
- Loan repayments
- Supplier/employee costs
- Management of key customer accounts
We help our customers protect their balance sheet through carefully tailored pecuniary programmes that insure them against:
- Loss of Revenue
Money paid or payable for services provided (and Stock in Trade, if any sold) in the course of business at the premises
- Professional Fees incurred.
- Additional increased cost of working
To cover any additional business expenses incurred whilst your business is interrupted
The relationships that we have built over the years with our extensive network of insurers means that we are able to negotiate and deliver the most relevant insurance cover, not only competitively priced but also with the widest possible coverage available to match our customers’ needs.
With market leading capabilities and experience in the Marine, Property & Casualty and Financial sectors, we will partner you to deliver risk transfer solutions, claims advocacy and risk management services with a bespoke, personalised approach.