Commercial risk
is the risk of default payment for the export of goods and services realized by the Insured.  The commercial risks are covered by BAEZ and the non–commercial risks are covered by State.

Short-term marketable risk
is the risk of non-payment under the contracts for sale of goods or provision of services with a credit period no longer than 2 years.

Non-marketable risk
is a short-term trade risk where the debtor in the shipment contract is a an entity from a State outside the States, determined as States with commercial risk which is officially announced annually.

Political risks are the risks, related to the State of the foreign buyer

  • refusal to pay a due payment;
  • political events such as war, coup d’état, civil disturbance, riot, strike, embargo and other events with a comparable effect in the debtor’s country or in a third country related to the payments under the insured  export contracts of goods and services;
  • enactment of new or changes in existing legal Regulations, Government or another state body’s decisions in the debtor’s country or in a third country connected with the execution of payments under the insured export contracts of goods and services;
  • confiscation or nationalization in the debtor’s resident country or in the country in which the debtor’s headquarters are situated, or in the country in which the payments under the export contract of goods and services must be fulfilled;
  • restrictions or prohibition on the shipment of goods or services imposed in accordance with international contracts to which the Republic of Bulgaria is a party, blocking the execution of insured export contracts signed before that imposition.

is an entity that concludes insurance contract with the Insurer and has an insurance interest.  The Insured is registered as a trader under the Commercial Law of Republic of Bulgaria.

under the Insurance contract can be a Bulgarian or a foreign legal entity, foreign state, state institution or state organization that has concluded a contract for sale of goods or providing of services with the Insured and is obliged to pay under the contract.

Credit Limit (sum insured)
is the maximum amount of Insurer’s liabilities in respect of the payments.

Period of the deferred payment (credit period)
is the time from the invoicing date until the due date.

Waiting period
is the time required to be settled the overdue payment and to make clear the matter between debtor and the insured. The beginning of the waiting period is the date of submission by the Insured of a Default Payment Declaration before the Insurer.

Creditworthiness of the buyer (debtor)
is its capability to fulfill its payment duties. BAEZ assess of the creditworthiness on the basis of legal and financial data for the buyer.

Insurance Premium
is the price of the insurance service and is defined by the Insurer depending on the debtor’s risk assessment, covered risks, terms and conditions of the insurance contract.

Insurance event
arises when a covered risk is occurred under the Insurance policy. The date of the insurance event is the date of expiration of the waiting period in case of default of the debtor or receivables of the Insured are included in the List of creditors in case of insolvency of the Debtor.

Insurance Indemnity
is the recovery paid by the Insurer up to the agreed in the Policy limits of the losses suffered by the Insured as a result of the occurrence of an insurance event.