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Export credit insurance


Insurance against the additional risks attendant on foreign trade. Commercial credit insurance companies provide normal cover, but the Export Credits Guarantee Department (E.C.G.D.), attached to the Department of Trade and Industry, is available for giving normal cover against bad debts and the very valuable extra cover against political and exchange risks. One important point to remember is that the E.C.G.D. offers a complete service covering all overseas dealings. It is not available for protecting the occasional individual contract which seems to carry especial risks, except for large capital goods contracts. This is only reasonable if one considers that the E.C.G.D., although non-profit-making, is run on commercial lines. Comprehensive policies are available for continuous contracts. Exporters with problems are invited to consult the E.C.G.D. without obligation at any time. and it will usually arrange for an inspector to call, in order to discuss the situation and the available aids.

Reference: The Penguin Business Dictionary, 3rd edt.