Insurance in foreign trade
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The security of goods against damage, breakage and theft during international transport requires companies operating in this field to take out insurance policies to deal with these risks, which can cost them their very existence, particularly in the case of a large transaction. It is true that they represent an additional cost for the company, but they are still necessary, whether against the risk of damage or theft, or against the risk of non-payment (buyer insolvency), since the seller and buyer are not in the same geographical, political, commercial, legal and customary areas. Several types...
The security of goods against damage, breakage and theft during international transport requires companies operating in this field to take out insurance policies to deal with these risks, which can cost them their very existence, particularly in the case of a large transaction. It is true that they represent an additional cost for the company, but they are still necessary, whether against the risk of damage or theft, or against the risk of non-payment (buyer insolvency), since the seller and buyer are not in the same geographical, political, commercial, legal and customary areas. Several types of insurance can be envisaged to deal with these risks. These insurances are linked to the risks to which both the importer and the exporter are exposed. The exporter runs the risk of the importer's insolvency in the event of a sale on credit. The importer runs the risk of loss or deterioration of the goods during the journey of which he has become the owner.
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