A pre-shipment guarantee is a type of insurance cover under which EKF pays compensation if a company is prevented from filling a specific export order as contracted.
The guarantee covers the expenses you incur until you have supplied the products and invoiced the buyer. As such, the guarantee does not cover the buyer's payments or your profit.
Your company's delivery might for example be prevented by unrest in the country, an import ban or other intervention by the authorities in the country that prevent you from delivering the products. The guarantee provides cover, until delivery is made, for unwarranted cancellation of the contract by the buyer during your production period.