Buyer and country risk cover
Assessment and cover for the two things that decide whether an export gets paid: your buyer's own creditworthiness, and the political and economic conditions in their country.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Buyer insolvency and protracted default, the commercial risk on the buyer
- Political events in the buyer's country, such as a payment moratorium or a delay in transferring foreign exchange
- War, civil disturbance and similar events preventing payment
- New import restrictions, or cancellation of an import licence
- Default by a government or public sector buyer, where that is covered
- An agreed share of the insured value, within the limit approved for that buyer and country
Key features
- Buyer risk and country risk are underwritten separately, and can be limited and priced separately
- Countries are grouped into risk classifications by insurers and by ECGC, which drives availability and price
- Credit limits per buyer, reviewed as information changes; cover applies within the limit
- Some countries can be off cover or restricted at any time, and the list changes
- Buyer and country credit reports inform the limits, and are part of what you are buying
- Capacity per buyer and per country is set by the insurer: [CAPACITY LIMITS]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us the buyers and countries you want cover on, the contract values, and the credit terms you are offering.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Buyer and country risk cover: FAQs
What is country risk?
The risk that payment fails for reasons outside your buyer's control: a payment moratorium, a delay in transferring foreign exchange, war or civil disturbance, or new import restrictions. It is underwritten separately from the buyer's own creditworthiness.
Can I get cover on any country?
No. Insurers and ECGC classify countries, and some are restricted or off cover at a given time. Ask before you commit to the order, because the classification changes.
How is a buyer limit decided?
From credit information on the buyer, such as financials, payment record and a credit report where one is available, together with the country's classification. The limit is what is insured; sales above it are at your own risk.
What happens if a limit is reduced during the year?
Cover usually continues for shipments already made within the earlier limit, and the new limit applies from then on. Your advisor will tell you as soon as an insurer changes it.