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Contract frustration insurance

Helping protect cross-border contracts in complex markets.
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When companies enter cross-border contracts, they can face risks that are difficult to control — from political instability and government action to buyer non-performance and payment delays. Contract frustration insurance helps businesses manage these exposures and pursue opportunities with greater confidence.

At Marsh, we work with clients to design solutions that support large, complex contracts and help protect balance sheets, cash flow, and growth plans in challenging environments.

Built for complex transactions

Contract frustration insurance is not a one-size-fits-all solution. It is structured around the details of the underlying contract, including its value, duration, payment profile, and geographic exposure.

For multinational clients operating in complex markets, this can provide valuable certainty and support more informed decision-making.

Frequently asked questions

Contract frustration insurance is designed to protect businesses against losses if a cross-border contract is disrupted, canceled, or not completed due to political events or certain buyer-related issues.

It is typically used for larger or longer-term contracts and can be tailored to reflect the structure of the agreement, payment terms, and country risk involved.

This type of solution is often relevant for clients in sectors such as:

  • Mining
  • Energy
  • Construction
  • Defense
  • Manufacturing

Contract frustration insurance can help clients:

  • Protect cash flow and reduce the impact of contract disruption
  • Support entry into higher-risk or emerging markets
  • Strengthen their position when negotiating major contracts
  • Support access to financing
  • Reduce exposure to large, balance sheet-impacting losses

Depending on the contract and risk profile, cover can be structured around a range of exposures, including:

  • Political violence
  • Import or export restrictions
  • License cancellation
  • Non-payment by a public buyer
  • Contract repudiation
  • Buyer non-performance
  • Arbitration award default

Protection can apply both before delivery and after delivery, depending on how the contract is structured.

Why Marsh

Marsh combines deep experience in structured credit and political risk with a strong understanding of multinational client needs. We help clients assess exposures, structure solutions around their contracts, and access insurance capacity that supports broader business objectives.

To learn more about contract frustration insurance and how Marsh can support your cross-border contracts, fill out the form below