are political risks included in a receivables insurance policy?
Trade credit insurers that insure export risks normally also offer so-called political risk cover. This is the risk that payment cannot be made due to actions by a foreign government, transfer restrictions, or insolvency of a government buyer. Political risk insurance used to be offered through government backed schemes, either through export credit agencies or companies acting on behalf of their government. In the 1990s private reinsurance companies started to include political risk cover in their reinsurance treaties, making these risks marketable, and eliminating the need for further government involvement. Many Receivables Insurance companies now offer comprehensive political risk cover as part of their standard policy wording.