Credit insurance provides cover against default by debtors (customers)and may also protect against ’country risks’ (factors within the buyer’s country that prevent the buyer’s ability to pay, such as social unrest). Cover can protect all of the debtor book or specific debtors. Some credit insurance companies also provide credit reference services.
International credit insurance is provided by a number of commercial organisations. In circumstances where commercial organisations are unwilling to provide cover due to commercial risks, cover may be obtained from a government department, such as U.K. Export Finance, previously known as the Export Credit Guarantee Department.