commodity traders · core of everything we do. continuity of relationships the person you meet at...

Commodity traders Gaining commercial advantage through specialist insurance

miller-insurance.comCommodity traders

We think of insurance as an

important enabler for your business

growth, as well as providing

essential protection when

challenges present themselves.

miller-insurance.com Commodity traders

We understand that today’s tough trading and financing environment puts increasing pressures on your business and drives the need for you to continuously re-evaluate your trading model to remain competitive and compliant.

Capital injections and trading contracts are harder to secure, regulation continues to increase, as do requirements for transparency around duty of care and sustainability. Further expansion into emerging and potentially volatile territories can be hugely challenging, and greater reliance on technology can lead to increased exposure to cyber-attacks.

Whilst evolution brings opportunity, it also changes the game when it comes to risk.

Having the right insurance in place gives you the peace of mind you need to focus on your business priorities. As well as offering practical and financial support to help enable new ventures, deals and transactions, it provides essential protection when challenges present themselves.

Protecting more than just your logistics chain

How Miller can helpWe are a leading (re)insurance broker, specialising in complex risks and producing integrated insurance solutions for clients.

With over 100 years’ experience of placing a cross section of coverages for commodity traders, we understand that no one-size-fits-all model works. Our approach is to work with you to identify your needs and tailor appropriate coverage and service programmes to match the commodities you trade, your firm’s operating model and commercial strategy.

Our 'one team' for commodity traders combines specialist expertise across the entire range of risks you face - an approach that our clients have said sets us apart.

OperationalRisks

TradingRisks

Corporate &Professional Risks

People and CrisisManagement


Protecting performance,

people and profit

With all aspects of your business in

mind, we can arrange the following coverages on a standalone or

multi-package basis to match your needs.

miller-insurance.com Commodity tradersmiller-insurance.com Commodity traders

Marine transport vesselsWe can arrange the following coverages for both owned and chartered vessels respectively:

»Hull and machinery - coverage against physical damage or loss to a vessel and associated equipment

» Increased value following a total loss - financial protection against the difference between the insured value of a vessel and market value of a replacement vessel

»War risks/piracy - physical loss or damage to vessels arising from a war peril/piracy and detention costs in excess of a specified period

»Charterers’ additional hire expenses - covers additional hire expenses if a vessel is detained or delayed as a result of piracy, ship seize or strikes

»Charter tonnage replacement - financial compensation in the event that following the total loss of a vessel chartered at one daily hire rate, a replacement has to be chartered at a higher cost

Marine transport liabilitiesWe have developed specially designed package policies for the marine and transport industry, including charterers' liability obligations.

This includes a wide range of tailored coverages to suit individual requirements and seamless policies to avoid coverage gaps between traditional marine and non-marine risks.

Stock throughputStock throughput insurance provides all-risks protection against physical damage or loss to commodities whilst at your risk anywhere in the global supply chain. This includes whilst in transit to or from anywhere in the world and via all modes of transportation, and whilst in storage, on a short term or inventory basis. Coverage can also include contingent interest in goods even when you don’t own them.

We understand that your requirements and exposures are unique, so we tailor coverage accordingly. This could include:

»Extending cover to include the risk of spontaneous combustion

»Providing guaranteed outturn shortage of transits, howsoever arising

» Incorporating well worded co-mingling clauses for when your commodities are stowed with other bulk shipments, to ensure no avoidable delays in claims payments with third party cargoes

»Negotiating high limit misappropriation

»Providing niche storage cover during repurchasing agreements.

Operational risks

miller-insurance.comCommodity traders miller-insurance.comCommodity traders

Trade disruption Trade disruption insurance protects you against loss of profit and costs arising from supply chain disruptions, even when there is no physical loss or damage to your assets. Policies can be triggered by political, physical or natural perils.

Trade creditTrade credit insurance protects against risks to your financial interests, arising from both commercial and political reasons beyond your control.

This includes:

»non-payment of invoices due to a buyer’s financial insolvency or default

»non-honouring of guarantees of payment or letters of credit issued by governments, banks or corporate institutions

»non-delivery of pre-financed products and/or commodities or return of advanced payment resulting in financial loss

»pre-payment protection, which is particularly important for pre-export finance transactions.

Coverage can assist you with managing your aggregation risks and financing arrangements, offering enhanced security for lenders through full or limited recourse facilities that trigger cash flow injections and better financing.

Trading risks

Political risk Political risks insurance protects against physical loss or damage to commodities, fixed/mobile assets and equity investments, where perils include:

»government action or inaction that deprives a corporation of all or part of its assets

» confiscation, expropriation, nationalisation and deprivation

» contract frustration and repudiation.

Cyber risksData and sophisticated IT systems are critical to successful trading operations. Cyber insurance protects your business in the event of a cyber-attack or data breach, covering:

»physical damage

»business interruption and loss of earnings

» reputational harm

» legal, regulatory, notification and resolution costs

» reimbursement of payment following an extortion threat

» access to specialist risk mitigation and crisis management/breach response services.


Corporate and Professional risks

Commercial property / physical assetsIn addition to general office insurance needs, we provide specialist physical damage, trade disruption and business interruption cover to protect fixed and mobile assets, such as terminals, tanks and warehouses worldwide.

General liabilities Our general liability offering for commodity traders covers third party liabilities that arise from your worldwide activities. This includes the tort liability you may assume of another party under contract.

For multinational operations, we can arrange cover on an excess basis to local policies, including statutory workers compensation/employers’ liability and statutory auto liability.

Crime Financial crime insurance provides financial protection against theft, fraud and dishonesty committed by employees and/or any third parties, irrespective of whether collusion is involved.

Directors’ and officers’We arrange insurance to cover directors and officers against allegations of wrongful conduct when acting as company executives. Coverage is available for both individual and company reimbursement.

Errors and omissions / professional indemnityIn the event of a negligent act, mistake or breach of professional duty causing financial damage to a client and for which you are held legally liable, errors and omissions/professional indemnity insurance can financially protect your firm, covering legal costs and consequential settlement fees.

Captive consultancy For commodity trading companies considering utilising a captive as part of their risk transfer strategy, we can provide advice at all stages of the captive life cycle; from initial feasibility to ongoing development, using actuarial modelling techniques and reinsurance to protect your retained risk.

Alternative risk transferSome risks your business faces may be so unusual that traditional insurance does not always operate. We apply out-of-the-box perspectives and specialist reinsurance solutions to help facilitate a trade deal, seeking to mitigate or remove the risk which threatens to stall it.


People risks and crisis management

Your people are your most important asset. We provide a global, market-leading people risks and crisis management proposition to provide safeguards and meet your duty of care obligations.

Coverages we place include:

» assault and hostage crisis

» disappearance

» extortion (including cyber extortion)

» kidnap, piracy and hijack

» threat of malicious acts

» corporate all risks evacuation

» crew personal accident and medical

» expatriate health insurance

» group personal accident and travel

» life assurance / keyman

» medical expenses and emergency assistance abroad.

Threat Intelligence ServicesOur people risks proposition offers much more than just insurance. Delivered by Special Contingency Risks, part of the Miller group, all policies include access to our in-house security consultancy and 24/7 crisis management services.

Designed to enhance your own intelligence gathering and inform Board decisions regarding duty of care and asset protection, our Threat Intelligence Services encompass the following:

» identification of your high risk/important locations, such as port hubs, transport routes (both land based and sea) and key countries or cities to your trade

» regularly updated slide packs created by our in-house intelligence team, accessible via our secure online platform

» 24/7 monitoring with risk reports provided following any incident close to your identified key location.

All of the above can be provided as part of your insurance programme or on a separate consultancy basis.


Innovation through technology Adding value through innovation is at the core of our approach; if it helps our clients, we’ll make it happen. We have a proven track record of developing in-house technological solutions that drive efficiency, cost savings and true commercial advantage for our clients.

Our most recent creation is our mobile app for commodity traders. Enabling commodity traders to take care of their credit and political risks insurance needs on the go, the app allows them to manage their

insurance needs remotely from their mobile devices, at any time and from anywhere. The intuitive interface and simple process takes the burden away from buying insurance, and provides peace of mind through instant confirmation that their submissions have been successfully received by insurers.

The app also provides access to policy documentation at the touch of a button, analytical and risk reports and data to support your interaction with banks and financiers, and exposure and premium management in real-time.

Commodity tradersmiller-insurance.com

Scenario How did we help? Result

Re-capitalisation of distressed production source

A trader was contemplating to pre-pay a distressed mining entity to secure the offtake of lithium product. In order to achieve this, the trader was required by their financing bank to get the non-performance risk insured.

Our approach to the market and representation of the client resulted in sourcing insurance from only two out of the fifty-five markets, something that would not have been possible if we didn’t have an all-encompassing approach to the insurance market. This resulted in coverage being placed to financially protect the trader and their financing bank against the non-delivery of commodities following the mine’s re-capitalisation.

Our client was able to enter into the lithium market, which is becoming an increasingly important product in the current economic climate, and facilitated their trading whilst the mining entity was not in operation.

How we’ve helped our clients

What sets us apart

Speed, quality of service, and knowledge of your business and the risks you face are what define our proposition.

Innovation, problem solving and value creation are what set us apart.


Cultural alignment


Speed of responseWe appreciate the fast moving pace of your industry and place speed of response as a top priority across all our services.

Deal focusedLike yours, our business is all about getting the deal done for our clients. When we say we will do something, our highly skilled and resourceful team does everything in its power to get the job done.

Quality of service Efficient, expedient and client first service is at the core of everything we do.

Continuity of relationshipsThe person you meet at the start of your relationship with Miller will be the same person presenting to underwriters and placing your business.

Insurance as a business growth enablerWhile insurance is a necessary function and cost to your business, we seek innovative ways to solve problems and facilitate opportunities by mitigating, or removing, the risk component.

No one-size fits all approachWe recognise that every trader is different and respond to your unique demands and needs accordingly.

Industry knowledgeWe pride ourselves on understanding the goods you trade and the risks involved. Combined with in-depth knowledge of insurer appetite and capabilities, we find the right match.

Strong market relationshipsOur scale and long-standing relationships with insurers give us significant market clout and leverage with underwriters to secure competitive premiums and broad coverage options.

International reach With offices in London, Paris, Brussels and Singapore, our global reach and access to international markets enables us to match your global footprint and source the most competitive terms.

We believe our culture and values align with those of a commodity trader.

Understanding of local regulationIn certain countries, local insurance regulation requires coverage to be purchased within the country of operation. In these instances, we can arrange policies as reinsurance and/or provide difference in conditions/limits as may be required.

One integrated teamWe provide client-first service from a single point of co-ordination, integrating experience and expertise from across our specialist areas.

Proactive claims managementOur dedicated in-house claims team provide market-leading advice from initial consultation to final settlement. They are fully integrated with our broking and technical teams, ensuring a consistent and expedient service at all times.


About MillerSince Miller was founded in 1902, we have gone from strength to strength because of our unwavering focus on delivering an exceptional standard of service to our clients.

We are known for doing the right thing, delivering on our promises and working as one team.

Today, we are a leading specialist (re)insurance broking partnership, headquartered in London with more than 600 people across our UK and international operations.

Chartered Insurance BrokersMiller is proud to hold Chartered Insurance Broker status, the industry gold standard awarded by the Chartered Insurance Institute (CII).

This title demonstrates our professionalism, client focussed approach and commitment to excellent service standards.

Charlotte Crosbie-Dawson | London Credit and political risksT +44 20 7031 2744M +44 7876 683 [email protected]

Arnaud Froideval | ParisCredit and political risksT +33 171 321 015M +33 648 414 [email protected]

Ash Ganesan | London Cargo and stock throughputT +44 20 7031 2113M +44 7876 831 [email protected]

Richard Scurrell | SCRPeople risksT +44 20 7088 9121M +44 7958 152 [email protected]

Anthony Burnell-Nugent | London MarineT +44 20 7031 [email protected]

Your team

John Moncavage | SingaporeCredit and political risksT +65 6512 5179 [email protected]

Tom Quy | London CyberT +44 20 7031 2694M +44 7557 563 [email protected]

Martin Henderson | London Marine, energy & transport liabilities T +44 20 7031 2593M +44 7795 061 [email protected]

Stuart Normand | London ClaimsT +44 20 7031 [email protected]

Mark Carver | LondonProfessional risksT +44 20 7031 2781M +44 7702 734 [email protected]


This material is for general information purposes only. Please speak to us directly to discuss your specific insurance needs. Authorised and regulated by the Financial Conduct Authority.Registered Number: OC301468. Version M152.03 1118.MC | Copyright 2018 Miller Insurance Services LLP

commodity traders · core of everything we do. continuity of relationships the person you meet at...

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