WHTA IS EXPORT CREDIT RISK INSURANCE

Exports not only face the risks of physical loss or damage, they may also face the risks of non-payment due to buyer's insolvency or default, government blockage of currency transfer, and other risks, known as credit risks. There are specialized organizations, often government owned, which insure credit risks. Credit risk insurance usually is applied in overseas projects and the coverage may run for a number of years.

In some countries, credit risk insurance may cover open account sales, but is subject to credit terms such as the destination country, the terms of sales, and the amount involved. Some insurers may require that the products for export have a minimum percentage of domestic content (51% or more usually) to qualify for coverage.