What Is Insurance in Import?

Overview of Import Export Insurance

Import export insurance protects shipments across borders. It reimburses financial losses from goods damaged during shipping, buyers not paying, or political upheaval. Coverage plans protect from those scenarios.

Types of Export Insurance

Export insurance covers risks like non-payment by buyers, damage or loss of goods during transportation, and political risks such as war and terrorism. It provides financial protection tailored to exporters’ needs. Credit insurance protects against buyer non-payment. Cargo insurance covers damage or loss of goods in transit. Political risk insurance protects against war, protests, or license revocation.

Importance of Export Insurance

Export credit insurance reduces financial risk from importer bankruptcy, default, or slow payment. It enables faster expansion into new markets.

Cargo Insurance

Having relevant import export insurance in place is vital to a company’s success. Minimum coverage should equal 110% of the shipment value. It provides protection for damaged or lost goods, goods causing damage, and non-payment.

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