Trade Credit

Trade Credit insurance is a way of securing payment of your outstanding invoices.

It is also known as:

• Business Credit Insurance,
• Export Credit Insurance, or simply
• Credit Insurance

Trade Credit insurance protects your business against losses resulting from unpaid receivables due to pure commercial risks, or commercial and political risks combined.

Coverage under a Hong Kong Trade Credit Insurance plan from Navigator is available in most countries around the world; except in those that may be closed or suspended, such as Afghanistan, Iran, and North Korea.

The total value of the risk to be insured will be dependent on the risk of a specific country and is covered up to a maximum of 90 per cent of the value of the items, goods, or services.

Given the turmoil in the market, underwriters are, it seems to us, increasingly conservative, so we are seeing an increased emphasis on evaluating:

• the quality of the buyers
• the countries where they are based and
• the history of the potential insured.