Credit Insurance Overview

Credit Insurance is the guarantee of accounts receivable against non-payment. Credit Insurance also affords political risk coverage on export receivables. Political risk includes:

• Contract Repudiation
• cancellation of contracts based upon foreign governmental decrees
• Expropriation/Seizure
• Actions taken by foreign government to seize your property
• Inconvertibility of Currency
• You inability to convert foreign currency to U.S. currency

In addition, credit insurance can also afford a company the opportunity to increase sales by simply expanding credit lines to existing clients and/or adding clients that they would not have normally added. It can also assist in accounts receivable financing and a lender can be named as beneficiary under the contract. As you would suspect, Credit Insurance has to be custom tailored to your wants and needs. This is where a broker can mitigate this process for you.