EDC — Performance Security Insurance
Last Update: July 29, 2025
Canada
Protection against letter of guarantee losses
EDC — Performance Security Insurance at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : July 1, 2024
- Closing date : July 9, 2024
Financing Type
Other Support
Eligible Industries
- All industries
Grant Providers
- Export Development Canada (EDC)
- Government of Canada
Program status
Open
Overview of the EDC — Performance Security Insurance program
Protect your cash flow, get coverage of up to 95% of your insured losses if a customer wrongfully calls a letter of guarantee or if a call is triggered by you not being able to meet your obligations due to specific political risks.
Eligible projects & activities
- Participation in international contracts or tenders requiring performance guarantees.
- Engagement in export projects where performance security is requested by a foreign counterparty.
- Execution of contractual obligations abroad that may be exposed to commercial or political risks.
Examples of admissible projects:
$ 760,000
Financial coverage for the export of medical equipment to Turkey
$ 475,000
Coverage for wrongful calls of guarantee on exported agricultural machinery to Russia
$ 1,900,000
Coverage for wrongful calls on a renewable energy project in Mexico
$ 1,140,000
Protection against wrongful calls for a construction project in Brazil
$ 570,000
Coverage on exporting IT solutions to Nigeria
$ 1,425,000
Protection against wrongful calls for exported clean energy technology to India
Eligibility criteria of the EDC — Performance Security Insurance program
- Eligibility is determined following Export Development Canada's (EDC) review of the letter of guarantee.
- Consideration is given to the conditions and economic outlook in the customer’s country and the customer’s profile.
Who is eligible?
- Companies seeking to insure performance security instruments for export contracts
- Businesses exposed to commercial and political risks in international markets
Eligible expenses
- Amounts relating to losses incurred due to wrongful or excessive call of a bank instrument by the counterparty, as outlined in a signed contract or bid process.
- Amounts associated with rightful call of the bank instrument by the counterparty resulting from war, cancellation or non-renewal of export or import permits, government actions, or acts of God occurring outside of Canada.
Eligibility criteria of the EDC — Performance Security Insurance program
There are evaluation and selection criteria for this grant. Eligibility is determined by EDC based on a review of the letter of guarantee, conditions and economic outlook in the customer’s country, and the customer’s profile. Commercial risks include wrongful or excessive calls of the bank instrument by the counterparty, while political risks involve rightful calls due to non-performance under the contract based on specific events.
- Review of the letter of guarantee
- Conditions and economic outlook in the customer’s country
- Customer’s profile
- Commercial risks: wrongful or excessive calls of the bank instrument
- Political risks: rightful calls due to non-performance under the contract based on specified events
How to apply to the EDC — Performance Security Insurance program
1
Prepare Documentation
- Review the terms and conditions of the letter of guarantee.
- Analyze the economic outlook in your customer’s country and assess the customer’s profile.
- Identify and document both commercial risks and political risks associated with the project.
2
Contact EDC
- Reach out to EDC representatives to confirm your eligibility based on the prepared documentation.
- Seek clarification on any specific requirements or additional documents needed.
3
Complete Application Forms
- Obtain and fill out the necessary application forms provided by EDC.
- Ensure all information is accurate, complete, and aligns with your initial documentation.
4
Submit Application
- Compile all completed forms and supporting documents such as the letter of guarantee and risk assessments.
- Submit the application package via EDC’s designated submission channel, which may be an online portal or physical mail.
5
Acknowledge Receipt
- Upon submission, note any confirmation or application reference number provided by EDC.
- Keep records of all submitted documents and confirmations for future reference.
Additional information
- Coverage may include both commercial and political risks associated with performance security instruments.
- Risk assessment is influenced by country conditions and the specific profile of the counterparty.
- Issues related to unresolved commercial disputes between the customer and the counterparty are noted in risk evaluation.
- Acts of God occurring outside Canada may impact coverage eligibility under political risks.
Apply to this program
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