What are the different types of international insurance?
International trade insurance compensates the importer and exporter against various types of losses, including damage to the goods in transit, products that damage consumers and non -payment importers. Compensate for the company to compensate the company when they lose money for one of these events. The insurance industry plays a role in addition to banks and financial intermediaries in ensuring that international sales parties have the ability to effectively carry out business across international borders. Insurance agencies take over some of the risks so that exporters are able to take opportunities to expand their businesses to foreign markets. Together with governments, banks and financial intermediaries, insurance agencies develop products that facilitate international sales. Especially in small and medium -sized enterprises, insurance agency agencies to use their familiarity with foreign markets to alleviate some risks that the beginning exporter of experience, by not having the type of institutional range that exporters wouldmade it easy to check the loan and business history of the importer.
Insurance agencies from time to time develop different products of international trade, such as foreign currency exchange insurance, but the main types of insurance used to facilitate trade include export loan, freight and product insurance. Export loan insurance allows exporters to offer open credit conditions to importers. Insurance provides protection for non -payment by the importer and pays most of the value of the receivable failure. Assuming that the exporter has resources and cash flow to conveniently float the product for importers with a promise of payment, to which it does not have to happen for 180 days, Removes Risk Risk of its own loan.
cargo insurance is a type of international trade that provides goods in transit. It can be removed by importers or exporters and usually contain the provisions stipulated in accordance with the terms of the sales contract. TEnto type of insurance guards against complete loss, damage that occurs during transport and any damage that occurs, while the goods sit in customs warehouses in both countries. There are also some eventuality that can occur when they enter a foreign country, such as seizures and products open during the inspections and provided underseading.
The second common type of international trade insurance includes liability for the product. If the customer suffers injuries due to imported products, the obligation may be significant. Exporters and importers often have this type of coverage within their blanket insurance contracts. Specific coverage of goods imported or exported abroad must be often added to politicians that cover only domestic sales. Alternatively, the parties must gain independent policy to protect their business interests.