What is the scope of a Credit Insurance policy?

A credit insurance policy provides between 80% and 100% cover against the non-payment of debts due to the insolvency or default of an insured customer. In addition, political risk cover is available to exporters selling to certain countries.

The main causes of loss that we cover are:

Insolvency

A number of events including administration, bankruptcy, administrative receivership and liquidation. The definitions are those used in English law or the equivalent in the customer’s country.

Default

Non-payment by the customer after a specified period from due date.

Political Risk

Protection against the restriction or delay of payments due arising from: war in the customer’s country, currency inconvertibility, cancellation of your export licence, cancellation of your customer’s import licence, contract cancellation by your customer’s government and contract frustration caused by any government.

The CIFS policy wordings carry the full description of risks covered.