Trade Credit Insurance

Trade Credit Insurance also known as Credit insurance is a risk management tool that covers the payment risk resulting from the delivery of goods or services.

The policy has been designed to cover insured against the commercial risks of their buyer’s default.

Under this policy the insurer will typically will cover the portfolio of buyers and pay an agreed percentage of an invoice or receivable that remains unpaid as a result of covered causes of loss. The causes of loss covered under this policy are:

• Insolvency - protect your business against the risk of non-payment if a buyer becomes insolvent.

• Protracted Default - when buyer fails to pay the receivable within a pre-defined period calculated from the due date of payment of the receivable.

• Political Risks - In case of exports cover, the Insured also has an option to cover Political Risks which covers non- payment due to: