What does EKF cover?
If you take out a Bond Guarantee, EKF will pay compensation if you make losses on export transactions as a result of commercial or political risks.
Commercial risk means that your buyer is unable to pay due to liquidation, insolvency or cancellation of the contract, or that the buyer is unwilling to pay.
Political risk occurs when you do not receive payment for products due to impediments in the country you are exporting to. Such impediments include war or civil war, currency shortage, restrictions on use of currency, import or export bans, and interventions by local authorities that make it impossible to receive payment for the products.
As a rule, EKF pays a maximum of 90% of the loss in compensation to your company. As an exporter, you usually have to cover a deductible of at least 10%.