Overview
- DFC and the Treasury announced the government-backed facility after President Donald Trump approved a detailed implementation strategy.
- The initiative is intended to stabilize shipping in the Gulf and sustain flows of oil, LNG, gasoline, jet fuel, and fertilizer through the Strait of Hormuz.
- The backstop is structured as a revolving program that can insure roughly $20 billion in maritime losses on a rolling basis.
- Initial coverage focuses on Hull & Machinery and Cargo insurance for vessels that meet specific eligibility criteria.
- Selected American insurers will serve as preferred partners with operational rollout coordinated with U.S. Central Command, and companies seeking coverage were directed to contact the DFC.