The purpose of export credit insurance is to offer protection to exporters of goods or services who sell their productions on credit terms. The exporter is insured against losses arising from a wide range of risks, which may be conveniently categorized into either commercial risks or political risks. The commercial risks would include;
1. 2.
3.
The insolvency of the purchaser
The default on payment by private purchaser at the end of the credit period
Non-acceptance of goods delivered to the purcha2s0er