The exporter can procure Insurance for loss or damage to the cargo and non-payment of the transaction.
Cargo Insurance
The insurance contract provides protection against losses occurring during the course of transit with various levels of cover and extensions available depending on the need of the organization.
Categories of Cover - A, B & C Clauses
“B” and “C”-clauses provide cover on a “nominated perils basis”. This implies that only those incidents specifically noted on the policy are insured against. “C”-clauses are the most restrictive cover and often referred to as “catastrophe insurance”.
A-clauses provide the widest cover. Unlike “B” and “C”-clauses, “A”-clauses covers all risks of physical loss or damage. Often referred to as “All Risks” insurance, this term is misleading as there are exclusions which will result in certain losses not being covered.
Where necessary, supplementary risk cover can be added, for example, in respect of theft, pilferage, non-delivery, malicious damage, and so on.
Note: Contact a Marine Insurance broker to evaluate your risk and offer a tailored made policy for your product.
Credit Insurance
Credit Insurance refers to Non-Payment on Invoices. When one is forces to offer credit terms and methods of payment that places your business in a financial risk position, due to market forces, obtaining a credit insurance policy will limit the financial risk to your business.
"...What is Credit Insurance?...Credit Insurance is usually purchased by a company to protect itself against specific losses that could impair the performance of the company. In the case of credit insurance, protection is offered to the supplier against the risk of the debtor going into liquidation (Insolvency); delayed or non-payment (Protracted Default) and in respect of export risks, the unilateral cancellation of contract (Repudiation) as well as a myriad of Political related risks" - http://www.creditguarantee.co.za/
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