Guarantee or indemnity obtained by a surety from a bonded party. If the insurer as surety pays out under say a performance bond, redress will be sought from the bonded party or any other party providing a guarantee on his behalf. The counter guarantee is obtained even though the surety has a common law right of redress against the bonded party.

The risk that a counterparty to a transaction will not pay when the triggering event occurs. The risk in the case of catastrophe bonds is low. The proceeds of the bond are invested in safe securities such as US Treasury Bonds and held in trust by the bankruptcy-remote SPV or a special trust. If the triggering event occurs the insurer is permitted to withdraw funds from the trust. In return the investors receive the one-year Treasury bill rate plus a premium rate.

Damage to baled or bagged cargo (e.g. cotton, coffee) caused by dirt, mud, excessive moisture from damp ground or weather, etc., occurring before the goods are actually shipped.
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Cotton in bales (fully pressed) may be damaged by sand, grit, mud, oils, rain etc. When these bales are rolled from place to place in course of normal handling such damage may also arise from exposure to weather when baled cotton is stacked in the open awaiting shipment. This type of damage is known as country damage.

Another term for political risks insured under export credit insurance.

A bond issued to a court of law to guarantee the performance of certain duties (accounting for income, preservation of property, etc.) by a principal.

Issued to the Court of Protection to guarantee the performance of a person responsible for the affairs of a mentally incapacitated person.