What is Trade Credit & Political Risk Insurance?
There are a number of private insurance companies that offer specialist insurance protection against credit and wider political risks to a range of clients including banks and other financial institutions, exporters and importers, commodity traders and foreign investors.
Trade credit insurance protects against non-payment brought about by credit risks such as default, insolvency or bankruptcy.
Political risk insurance protects against non-payment due to exposure to political force majeure events, including acts of terrorism and war and other political violence. It also covers the risk that payment cannot be made due to actions by a foreign government.