Insurance for companies
Last update
In addition to financial support for prospecting, the Office du Ducroire (ODL) offers insurances against the risks associated with international transactions and foreign investments.
Who is concerned
Luxembourg companies and the banks that finance these companies.
Prerequisites
To benefit from export credit insurance, your company must:
- be:
- based in Luxembourg;
- an exporter;
- in possession of all of the valid authorisations required to carry out its activities;
- financially sound; and
- represent substantial added value for the Luxembourg economy.
Costs
The insurance premium depends on:
- the type of credit insurance policy best suited for your project;
- the payment conditions granted to your debtor;
- the risk assessment in relation to your clients' financial situation as well as to the country concerned.
How to proceed
Insurance for companies
Export credit insurance
Export credit insurance covers Luxembourg exporters against the risks of non-payment by their clients who are based abroad, whether these risks are:
- of political origin; or
- associated with the clients' insolvency or defaults.
To submit your application, you must fill out the form entitled 'Special transactions & MLT' in which you will provide a range of information on:
- the exporter;
- the commercial contract;
- the financial contract (if applicable);
- the composition of the transaction amount;
- the required cover;
- the environmental, social and governance impacts.
Top-up insurance
The top-up policy allows you to cover, on a one-off and on a case-by-case basis, amounts exceeding the limits agreed by private credit insurers. This option was created to enable Luxembourg exporters to protect themselves against the risks associated with transactions with strategic clients that private credit insurers refuse to cover or agree to only cover partially.
To submit your application, you must fill out the form entitled 'Top-up application form'.
Insurance for foreign investments
Insurance for foreign investments provides Luxembourg investors with protection against the risk of a total or partial loss of their investment as a result of political or force majeure events in the host country.
The investment may take the form of participation in the capital, a loan or the provision of a security.
To submit your application, you must fill out the form entitled 'Foreign investment insurance'.
Pre-shipment insurance for imports
Pre-shipment insurance for imports:
- is intended for Luxembourg importers having to make advance payments to their foreign suppliers; and
- covers the risk of non-reimbursement of the advance payment if the supplier does not deliver as expected.
To submit your application, you must fill out the form entitled 'Request for an insurance of risks related to prefinancing import transactions'.
Insurance intended for banks
Insurance of guarantee commitments
Insurance of guarantee commitments covers the banks of Luxembourg companies that are active internationally, which are required to give bank guarantees (advance payment guarantees, performance guarantees etc.) for the benefit of a foreign client, against the risk of non-reimbursement of the guarantee amount if the foreign client calls on the guarantee.
To submit your application, you must fill out the form entitled 'Insurance of guarantee commitments - Application form'.
Bank loan insurance
The insurance of bank loans covers banks which grant credit lines to Luxembourg companies who are active internationally, against the risk of non-reimbursement of the granted loan amount.
To submit your application, you must fill out the form entitled 'Insurance of bank loans - Application form'.
Online services and forms
Who to contact
-
Office du Ducroire (ODL)
- Address:
- 65, rue d'Eich L-1461 Luxembourg Luxembourg
- Phone:
- (+352) 28 85 54 21
- Email address:
- odl@odl.lu
- Website:
- http://www.odl.lu/en/homepage/
