Definition

Protects against losses due to political events in foreign markets. It helps maintain stability when operating in unpredictable regions.

What to consider

  • Evaluate the risk of customer default.
  • Review the coverage limits and premiums.
  • Understand claim procedures and timing.

Real world scenarios

  • A manufacturer purchased trade credit insurance to cover losses from customer non-payment.
  • A wholesaler secured trade credit insurance to protect against defaults from large buyers.
  • An exporter used trade credit insurance to safeguard against international payment risks.

Related terms

Insurance & Financial Protection