Export & Political Risk Insurance (outside of Australia & New Zealand)
Are you an exporter? Are some of the destinations that you export to subject to different types of risks? At Niche Trade Credit we can ensure that you have the right export credit insurance and/or political risk insurance to suit your individual business requirements.
This insurance is especially necessary when an international client prefers to trade on an Open Account or Documentary Collection basis, rather than the standard Letter of Credit.
As a business, it’s important to limit your financial risks; at Niche Trade Credit, we can help you to protect your business for complete peace of mind.
What is export credit insurance?
Essentially another form of risk insurance, it is designed for businesses that export their products or services to companies overseas.
Just as standard trade credit insurance protects companies against any losses incurred via bad credit, this type of insurance essentially covers you when you fail to receive payment for the goods/services you’ve exported. Imagine sending a large shipment of goods overseas, only to never receive payment – best case scenario it’ll be stressful, worst case scenario it could place your business’s financial position in jeopardy.
There are many reasons why you may encounter bad debt when exporting; however there is no need to be alarmed. Most risks can be covered by insurance!
What is political risk?
Developing markets provide a wide range of opportunities for businesses involved in export, yet it’s important to remember that there are also risks involved. In many cases there may be political risks that are beyond the control of your business, and therefore it makes sense to take out insurance.
Political risks include war, civil strife and coups, restrictions on the conversion and transfer of local currency earnings, and also government interference regarding contracts.
If you’re planning to export your products or services, be sure to familiarise yourself with political risk first and consider insurance coverage.
What can these insurance types cover?
When you are exporting to foreign shores there are so many different factors that you have absolutely no control over. As a business, it’s important to limit your risks where possible; this is where the insurance that we can source for you comes in handy.
So what exactly can our insurance options cover?
Enquire today on how we can help your business with Political Risk & Export Credit Insurance!
There are many situations where this type of insurance can come in handy, such as:
- Contract repudiation
- A rejection of the goods by the buyer when they are delivered
- Non payment or insolvency and considering the fast changing economy that we are in this can be a very real risk
- If import or export licenses are suspended or cancelled
- If a Government organisation defaults on payment
- If a foreign Government chooses to cancel the contract with the buyer
We’ll match you with the ideal insurer
Offering a comprehensive insurance brokerage service, Niche Trade Credit Insurance also offers full protection for export clients. When an overseas buyer doesn’t want to use a Letter of Credit and prefers to trade on Open Account or Documentary Collection basis, export credit insurance cover becomes a necessity. If you want to safeguard your business from political and/or export risk, give us a call and one of our expert staff can design the ideal policy for your business.
Enquire today on how we can help your business with political risk and export credit insurance. Our Client Advice Centre provides businesses with prompt, up to date advice – and the first month is free.
Niche Trade Credit Insurance also offers full protection for export clients. When an overseas buyer doesn’t want to use a Letter of Credit and prefers to trade on Open Account or Documentary Collection basis, Export Credit Insurance cover becomes a necessity.
Call 02-9416 0670 for Free Advice on Export and Political Risk Insurance
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