Export credit insurance for high risk overseas orders

Export credit insurance for high risk overseas orders

Doing business abroad often comes with a higher risk than conducting business solely with domestic customers. This is certainly true when it concerns a new customer, larger sums, longer running times or if you do business in a politically unstable country. If your own insurer cannot or does not want to cover this risk, the export credit insurance with guarantee from the Dutch State could offer a solution.

Guarantee from the government

With this export credit insurance, you take out insurance with an insurer and the government guarantees it. The insurance covers the export of capital goods and services. With the guarantee from the government, the insurer is able to apply regular tariffs. These are based on the risk of the country to which the goods or services are exported, the risk of the customer, and the specific risks associated with the transaction. Should you incur losses because your customer does not settle their accounts, the Dutch State will compensate you or the insurer for this loss. The State will then try to recover the losses from your customer.

Important! Application for the export credit insurance occurs via Atradius Dutch State Business.

At least 200,000 euros.

The export credit insurance applies to amounts of 200,000 euros and above. The insurance covers 90% to 98% of the loss incurred. You can request the insurance prior to entering into the contract with your customer, so that you already know whether your risk will be covered and under which conditions. Before the pay out is made in the event of loss, there is usually a waiting period of three months within which you must continue to try to obtain payment from your customer.

Not all countries are covered

It is important to realize the export credit insurance does not cover the risks in all countries. For instance, for exports to North Korea, there is no regular provision of insurance cover. On the website of Atradius Dutch State Business you can see what the policy is per country and how the payment risks are estimated.

Tip: On the website of Atradius Dutch State Business you can calculate the premium you will have to pay for the export credit insurance. This depends, among other things, on the country which you export to.

If you have questions about the export credit insurance, please contact us or visit the government website.

Source: SRA – date of publication: 18-10-2016