What is Export Credit Insurance designed to protect against?

Export Credit Insurance is specifically designed to safeguard businesses against the risk of non-payment of international accounts receivable. This type of insurance provides protection for exporters when foreign buyers fail to pay for products or services due to various reasons, including insolvency, political risks, or contract disputes. By insuring these receivables, businesses can mitigate the financial impacts of such defaults, ensuring that they can maintain their cash flow and protect their investments in international sales.

The other options may seem relevant, but they do not align directly with the primary function of Export Credit Insurance. Payment delays or currency exchange fluctuations might affect cash flow or profit margins, but they do not directly constitute a failure to pay, which is the core concern of Export Credit Insurance. Meanwhile, loss of goods during shipment pertains to different insurance products, such as marine cargo insurance, which covers physical loss or damage to goods in transit rather than the credit risk associated with the buyer's ability to pay.