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Korean: 한국 고객을 위한
Staff Answer
May 10, 2020 - 07:18 PM
Thanks for your question.
In order to ensure a safe shipment and to carry out successful export import business, responsible exporters and importers always opt for the various insurances that cover their possible losses at different stages.
Following are the different types of insurances associated with EXIM business -
Goods Insurance - Exporter may suffer financial loss if goods are damaged during transportation from the port of dispatch to the point of destination. To protect from loss, exporter may have to take insurance policy to protect him from physical damage to the goods.
Cargo Insurance - Cargo insurance is a contract of indemnity, that is, to compensate for the loss or damage in terms of the value of the insured goods. The amount insured as agreed between the insurer and the assured forms the basis of indemnity.
Export Credit Insurance - This kind of policy offers you protection in case your foreign client fails to make payment for goods. This is important if for any reason a buyer is unable to honor his side of the agreement. This is one major obstacle that prevents new traders from venturing out onto the international trade domain regardless of its limitless advantages over most other existing forms of trade.
Marine Insurance - Marine insurance for export goods is not only limited to consignments that are transported over the sea, it is a complex package that provides a cover for goods from the moment they leave the supplier’s hands to the point they are handed over to the buyer.
Political Risk Insurance - Emerging economies are usually highly prone to interference by governmental authorities that could result in the confiscation of goods or failure to get payment for them. Such governments inadvertently pass laws that might result in blocking the normal channels of money transfer out of the country or even the expropriation of business assets.
This insurance covers against the risks that may result from political instability for instance war, upheavals or riots that might lead to loss or damage. It also covers unavoidable factors that may invalidate your claim to business within the country for instance the cancellation of your trading license, direct foreigner discrimination that serves to favor local entities and crush the rest or government contracts that are not honored when political unrest takes center stage.
Currency Conversion Insurance -This form of insurance mitigates against any losses that may arise from the negative effect of currency movements.
In addition, it is imperative to ensure that the documentation is in place to be able to keep your insurance in place. Some of the significant documentation that need to be obtained are -
Thanks and regards,
go4WorldBusiness.com Team
In order to ensure a safe shipment and to carry out successful export import business, responsible exporters and importers always opt for the various insurances that cover their possible losses at different stages.
Following are the different types of insurances associated with EXIM business -
Goods Insurance - Exporter may suffer financial loss if goods are damaged during transportation from the port of dispatch to the point of destination. To protect from loss, exporter may have to take insurance policy to protect him from physical damage to the goods.
Cargo Insurance - Cargo insurance is a contract of indemnity, that is, to compensate for the loss or damage in terms of the value of the insured goods. The amount insured as agreed between the insurer and the assured forms the basis of indemnity.
Export Credit Insurance - This kind of policy offers you protection in case your foreign client fails to make payment for goods. This is important if for any reason a buyer is unable to honor his side of the agreement. This is one major obstacle that prevents new traders from venturing out onto the international trade domain regardless of its limitless advantages over most other existing forms of trade.
Marine Insurance - Marine insurance for export goods is not only limited to consignments that are transported over the sea, it is a complex package that provides a cover for goods from the moment they leave the supplier’s hands to the point they are handed over to the buyer.
Political Risk Insurance - Emerging economies are usually highly prone to interference by governmental authorities that could result in the confiscation of goods or failure to get payment for them. Such governments inadvertently pass laws that might result in blocking the normal channels of money transfer out of the country or even the expropriation of business assets.
This insurance covers against the risks that may result from political instability for instance war, upheavals or riots that might lead to loss or damage. It also covers unavoidable factors that may invalidate your claim to business within the country for instance the cancellation of your trading license, direct foreigner discrimination that serves to favor local entities and crush the rest or government contracts that are not honored when political unrest takes center stage.
Currency Conversion Insurance -This form of insurance mitigates against any losses that may arise from the negative effect of currency movements.
In addition, it is imperative to ensure that the documentation is in place to be able to keep your insurance in place. Some of the significant documentation that need to be obtained are -
- Insurance Policy
- Broker's Note
- The Certificate of Insurance
Thanks and regards,
go4WorldBusiness.com Team
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