Risk

Private credit insurers provide cover for short-term marketable and non-marketable export risks.

Marketable risk
According to the European Commission, marketable risks are commercial and political risks associated with short-term export credits within the European Union and the Member States of the OECD that have a maximum risk period of less than two years.
Non-marketable risks
Non-marketable risks are, for example, any export transactions to countries outside the EU and the OECD, as well as to South Korea, Turkey and Mexico.

Political risk
Political risks refer to war, civil war, strikes, internal unrest, uprisings, embargoes, blockades, lockouts, confiscation, state interventions, payment bans, moratorium risks, conversion risks, transfer risks and boycotts.  Political risks are excluded from the insurance cover.

Disaster risk
Disaster risk includes, for example, earthquakes, flooding and occurrences such as major fires. Disaster risks are excluded from the insurance cover.

Commercial risk
Commercial risk covers the inability to pay or payment default of a customer of the policy holder.

Production risk
Insurance cover for the commercial risk begins upon delivery of the goods or commencement of the services.  The pre-shipment risk covers the costs that the policy holder incurs owing to the production of goods prior to delivery based on orders that have already been placed.  Extra cover may be taken out with the insurer to cover such costs.