Insurance Denied

It’s challenging these days for small to mid-sized companies trying to compete with large scale enterprises. And, to make matters worse insurance companies are discouraging coverage for some of these companies, according to the Export Credit Guarantee Corporation (ECGC).

 We are discouraging exporters who are asking for cover for one shipment or single buyer in a particular country… We are advising them to come for turnover cover (a bouquet of shipments),” a senior ECGC official said.

The economy has not helped. Many exporters are facing cases of  payment defaults, and without insurance to help cover this risk it can eat at the company budget.  The Commerce Ministry in the United Kingdom is already in discussions to help extend coverage to small scaled exporters.

Tags: Export Insurance, Global Trade, SME
Posted in Small to Mid-Sized Companies |