This insurance cover focuses on capital equipment — not necessarily owned outright by the export contractor — which becomes subject to various lease agreements in the context of international construction or project execution. The export contractor may act as either the lessor or the lessee. Equipment usage can be terminated during or upon completion of a project, and contractors frequently face challenges in enforcing their contracts or repatriating plant and equipment. The applicant can choose between two cover options: Financial Lease (Full Pay-Out) and Operating Lease (which also includes a separate return-of-equipment component).
Under the Financial Lease option, ownership is retained by the lessor while substantially all risks and rewards of ownership transfer to the lessee (a full pay-out lease). ECIC covers political and commercial causes of loss on both the lease instalments and the underlying equipment value. Political risks include war and civil disturbances, confiscation, expropriation and nationalisation, change in law, breach of contract, transfer restriction, political events during transit, and terrorism and sabotage. Commercial risks cover non-payment due to insolvency or protracted default by the lessee. The insured contractor may obtain up to 100% of the outstanding lease instalments (subject to prior down payment). Eligibility requires compliance with the SA content requirement and that the underlying equipment is a movable asset.
Under the Operating Lease option, the lessor retains responsibility for maintenance and insurance. Two separate insurance policies are issued: one for the rental amounts (up to 100% of outstanding rentals, subject to prior down payment of up to 15%) and one for the leased equipment itself (up to 90% for political risk events only). Commercial risk cover for non-payment of rentals is also available (insolvency or protracted default). The underlying equipment is covered for political risk events at up to 90% of declared book value. The lessor must declare the insurable value (book value) at the start of the lease period and on each policy anniversary.
A separate Return of Equipment cover is available for contractors’ plant and machinery that must be returned to South Africa after use on construction sites overseas. This cover addresses political events that prevent or impede repatriation.
Lease and Return Insurance is available to:
Financial Lease (Full Pay-Out):
Operating Lease:
Return of Equipment (Operating Lease):
This product covers capital equipment used in the performance and execution of international construction and project contracts, specifically:
The cover extends to equipment in transit and may also be extended to the lease of buildings, subject to ECIC’s assessment of security, enforceability, legal system, taxation, and land ownership conditions in the host country. Software leases may be covered in accordance with sectoral developments.
Financial Lease eligibility:
Note: Lease of software will be considered in accordance with sectoral developments. Lease of buildings may be covered based on security, enforceability of lease contract, legal system, taxation, and land ownership in the host country.
Operating Lease eligibility:
Political risks covered (both lease types):
Commercial risks covered (Financial Lease only):
Commercial risks (Operating Lease):
Applications for Lease and Return Insurance should be submitted directly to ECIC:
Before applying, prepare the following:
Use this checklist to assess whether Lease and Return Insurance is suitable for your situation:
Applicants must provide: lease agreement details (type, duration, rentals, repayment schedule); equipment description and book value; lessee/borrower details and country; host country political risk information; evidence of SA content compliance; down payment details; and, for return-of-equipment cover, project site details and repatriation plan.
The SA content requirement must be met. For Operating Lease, the SA content determination includes the value of services rendered by the lessor such as operating, repairs, maintenance, and other technical assistance in addition to the equipment value.
To apply for ECIC Lease and Return Insurance or to request more information, contact ECIC directly:
The above indicative premium rates are based on USD amounts.
Please note that the above premium rates are indicative, non-binding, and are based on limited assumptions regarding specific project risks. ECIC is not legally bound by indicative premiums. Actual premiums will be determined by ECIC upon submission of detailed project information or a completed insurance application form and may vary substantially as further information becomes available. We do not accept any liability for loss or damage of any nature, including indirect or consequential loss which may be attributable to the reliance on and use of the premium calculator. Please contact us for verification of any of the information provided.
IMPORTANT:
These results are indicative. Final terms to be confirmed by the fund agency.
Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.
Core documents (required for almost all funds)
Project‑specific documents (depending on the fund)
Additional requirements
Timelines vary by fund and depend heavily on the quality and completeness of your application.
Email Address: info@ecic.co.za
Contact Number: 012 471 3800
Portia Dube: 012 471 3800
Use the following tools to help you apply:
