Trade Credit Insurance - Frequently Asked Questions

What is insured?
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What is insured?
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What kinds of risks are insured? 
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What kind of risks are not insured?
* Can I insure a buyer based in my own country?
* What is political risk?
* Are political risks included in a trade credit insurance policy?
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Does trade credit insurance cover the effects of armed conflict?
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If I am only concerned about a few buyers, can I insure only these?
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Can I insure only those risks that are of concern (Selected Risks)?
* Can I insure a single transaction only?
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Civil Unrest: Is this insured?
* Chapter 11: Is this insured? 
* Is nationalisation insured?
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Is transfer of currency insured?

Policies
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Are trade credit insurance policies standard or tailor made?  
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How do I get a policy?
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What does a trade credit insurance policy cost? 
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How is the premium calculated?
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Are there policies designed for multinationals? 
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Are there policies designed specifically for SMEs?
* What is the maximum liability?
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How does whole turnover cover work?
* What is protracted default?

Credit Management
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How is credit management defined? 
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What credit management tools are available to the credit manager?

Liquidity
How can trade credit insurance ensure my company's liquidity?

Insolvency / Bankruptcy
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What happens if bankruptcy occurs?
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When does insolvency occur? 

Collections
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What happens if your customers don’t pay?
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How do debt collections work?

Domestic & Export trade credit insurance
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What is the difference between domestic trade credit Insurance and trade credit insurance?
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What is the difference between export credit insurance and trade credit insurance?
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Is there a difference between Export risks and Domestic risks?

Credit limits
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How do credit limits work and what is their value?
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Does the credit insurer need to know the identity of all the buyers of his clients and the usage
  of granted credit limits?


Other
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What is the difference between the credit risk of a banker and that of a trade credit insurer? 
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How does a trade credit insurer cover its risk?
* Is trade credit insurance a type of financial guarantee?
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What is the difference between trade credit insurance and factoring?
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Marketable Risks and Non-Marketable Risks: What are these? 
How is trade credit insurance considered in IFRS? 
 

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