Export Credit Insurance provides protection against the risks of non-payment involved when offering credit terms to your overseas buyers.
The subjects of insured interest under credit insurance and cargo insurance are entirely different. The former subject is "the debt" or "the current assets" whereas the latter is the "goods","product" or "merchandise".
Yes. When your company is engaged in export trading on credit payment terms namely Documents against Payment (DP), Documents against Acceptance (DA) and Open Account (OA), it is exposed to "non-payment" risks. Unforeseeable political, social and commercial factors can also prevent payments from your buyers to your company.
Being insured by export credit insurance, your company is protected against bad debts risks, enabling you to secure by extending more favorable terms to overseas buyers. Your capability in acquiring trade finance is also enhanced.
Risk covered can be classified as buyer risks and country risks.