Which of the following best defines export credit insurance?

Export credit insurance is designed specifically to protect exporters from the risk of non-payment by foreign buyers due to commercial or political events. This type of insurance helps businesses mitigate the financial risks associated with international trade, which can include buyer insolvency, payment defaults, and adverse political developments in the buyer's country, such as government actions that may hinder the transaction.

By offering coverage against these risks, export credit insurance allows companies to engage in global markets with greater confidence, knowing they have a safety net should issues arise during the payment process. This enables exporters to expand their reach without the constant fear of potential losses from uncollectible accounts.

The other options do cover specific types of insurance but do not accurately represent the primary purpose of export credit insurance. Theft of goods in transit addresses logistics-related risks, production downtime relates to operational inefficiencies, and employee accidents concern health and safety risks abroad. None of these options encapsulate the essence of the protection that export credit insurance brings to exporters against both commercial and political risks.