Credit Insurance is designed to protect sellers against non-payment due to commercial or political risks, enabling businesses to confidently expand operations without fear of financial loss. Additionally, credit insurance facilitates access to liberal credit facilities from banks and financing institutions. Under domestic credit insurance, defaults on payment for goods or services on open credit terms are covered, except in cases of cash, advance payment, or letter of credit.

Receivables often represent a significant portion of a company’s current assets, and like fixed assets, they require protection. Selling on credit exposes businesses to commercial risks such as buyer default or insolvency.

For exports, additional risks such as political instability, import restrictions, contract cancellations, or trade wars are prevalent. These risks can be mitigated under an Export Credit Insurance policy. Companies with both domestic and export sales may opt for a single combined Credit Insurance policy to cover all credit exposures.

At Securisk Insurance Broking Pvt. Ltd., our team of credit insurance specialists has the expertise to design customized credit insurance solutions tailored to the unique requirements of any business. We partner with both public insurers, including ECGC, and private sector insurers to procure, arrange, and service credit insurance covers efficiently.

Policies may be issued on a Whole Turnover or Selective Basis, depending on the sales profile and insurer requirements. Premiums are determined based on factors such as buyer/country rating, credit terms, payment history, and industry profile, and are typically calculated as a percentage of sales turnover or exposure.

Key Coverages

Commercial Risk

• Insolvency of the buyer or the LC (Letter of Credit) issuing bank

• Default of buyer regarding accepted liability

• Repudiation, including non-acceptance of bills

Political Risk (for Exports)

• War and internal strife in the importing country

• Cancellation of import license

• Foreign exchange restrictions and embargoes