Safeguard Guarantee Company Ltd. was established in Bermuda in October 2008 and started trading on 21 November 2008. The company offers the financial security required under the Bunker Convention for mobile offshore units and other vessels insured outside the International Group of P&I Clubs reinsurance structure.
In complying with the Bunker Convention, insurers will be exposed to risks, primarily nuclear, biological and chemical, falling outside the scope of the traditional reinsurances taken out in the commercial market for mobile offshore units and other specialist craft insured outside the International Group structure. This may have a detrimental effect on the insurers' balance sheets.