Financial and Legal Costs/Export Credit Insurance
|Unit 4.8-Financial and Legal Costs|
Export Credit Insurance
Export credit insurance is a specialized line of insurance. These policies cover sales from the United States to countries world-wide. Like domestic policies, they cover against the financial inability to repay for goods sold or services rendered. Premiums for export coverage generally run higher and could range from 2.5/10% to 1% of covered sales. Many companies are finding that requiring letters of credit and other cash documents places an artificial obstacle between a buyer and seller, restricting growth. These companies often use credit insurance to offer open terms and be more competitive in the global market place.