War Risk Trading Warranty under War Risk Insurance Scheme
What is war risk insurance?
War risk insurance is a type of insurance that covers losses caused by war, terrorism, or civil unrest. It is typically purchased by businesses that operate in or ship goods to areas that are considered to be high risk.
What is a war risk trading warranty?
A war risk trading warranty is a clause in a commercial contract that requires the buyer of a good or service to obtain war risk insurance for the good or service. This warranty is designed to protect the seller from losses caused by war, terrorism, or civil unrest.
How does a war risk trading warranty work?
Under a war risk trading warranty, the buyer is typically required to obtain war risk insurance that covers the full value of the good or service. The buyer must also provide the seller with a copy of the insurance policy. If the good or service is lost or damaged as a result of war, terrorism, or civil unrest, the buyer will be able to file a claim with the insurance company. The insurance company will then pay the seller for the loss or damage.
Benefits of a war risk trading warranty
There are several benefits to a war risk trading warranty for both buyers and sellers.
For buyers, the benefits include:
- Protection from losses caused by war, terrorism, or civil unrest.
- Peace of mind knowing that their goods or services are insured.
- The ability to negotiate a lower price for the good or service since the seller is assuming some of the risk.
For sellers, the benefits include:
- Protection from losses caused by war, terrorism, or civil unrest.
- The ability to sell their goods or services to buyers in high-risk areas.
- The ability to charge a higher price for the good or service since they are assuming some of the risk.
War risk trading warranties are an important tool for businesses that operate in or ship goods to high-risk areas. They can help to protect businesses from losses caused by war, terrorism, or civil unrest.
Please note that this information is general in nature and should not be taken as legal advice. You should always consult with an attorney to discuss the specific terms of a war risk trading warranty.