Credit Insurance

Evaluating Cover
  • Stephen A. JonesEmail author


A company is exposed to several risks when selling their goods overseas. Causes of non-payment which are of no fault of the seller can usually be covered by insurance. Whilst credit insurance can be used to enhance the quality of the source of repayment, being the buyer and their country, the financier relies upon the terms, conditions and extent of cover provided, and the client’s compliance with the requirements of the policy.

This chapter describes the key aspects of the contract of insurance which need to be evaluated prior to the release of finance, to include the insured percentage, deductibles, type of cover, maximum annual policy limit and the terms, conditions and restrictions.


Aggregate first loss Claim waiting period Commercial risks Contract of insurance Credit insurance Credit insured limit Declarations Deductibles Evaluation Excess Insured percentage Insured risks Insurer status Joint insured Loss payee Losses arising Maximum extension period Maximum policy liability Minimum retention Non-recourse financing Period of cover Policy performance Political risk Pre-delivery risk Protracted default Retention of title Risks attaching Third party country risk 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.AXS Trade Finance Ltd.Solihull, West MidlandsUK

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