No business today can be fully secure and safe while conducting business with its clients and dealers. There is always the risk of default or non-payment

from the customer's side. No one running a business can claim a hundred percent record in collecting sales receivables. There are often other factors like

geo-political risks and changes in the macro business environment that cause a default in payment for goods. How do you safeguard your business against this

risk? The answer is credit insurance cover when you engage in large sales transactions.

Given the nature of such commercial transactions, there are some risks that the enterprise that has supplied the goods or services must deal with. Some of

the common risks associated with global commerce are the risk of overdue payments, the risk of repeated delays in realizing the payment from some customers

and the risk of the customer going back on the commitments made at the time of the sale. Or indeed going out of business. You cannot expect to get credit

insurance cover for other sales risks such as a customer refusing to accept goods on the grounds that they are defective or for some other valid reason.

Credit insurance also does not extend cover to sales transactions that are disputed by either entity in the transaction.

Credit Insurance is therefore most effective when you negotiate the details of the insurance cover in advance with the insurance broker or underwriter. Some

providers of insurance cover try to introduce restrictive clauses to reduce the effectiveness of export credit insurance policies. This makes it all the more

important that you choose an independent insurance broker for your company credit risk insurance requirements. It is also advisable to negotiate a detailed

terms of reference as an appendix to every company credit risk insurance cover that you commit to. This will help you to get your claims processed more

quickly in case you have to activate the insurance cover.

Some of the reliable companies that you can consider for getting your sales transactions insured are Atradius, Euler Hermes, AIG, Coface and Ducroire. These

insurance companies have dedicated insurance advisers who are aware of the international laws governing trade and commerce. They also have a list of firms

that are not reliable and are likely to go back on their commitments in commercial transactions. All this information could e very useful for your business

as it goes in for an export credit insurance cover.

Most reputable credit insurance brokers will deal with all the major underwriters including Atradius, Euler Hermes, AIG, Coface and Ducroire and have

dedicated insurance advisers who are aware of the international laws governing trade and commerce as well as market knowledge of where the most appropriate

cover could be obtained. They are also aware of the firms that are less reliable and are likely to be difficult when dealing with claims. Finding a good

credit insurance broker is vital if your business is likely to require export credit insurance cover.