The whole point of doing any business is to assume profits. We would do anything and everything in our power to stop a loss and to get your balance sheet on the positive side as entrepreneurs. The same goes in international trading too. You most definitely want to make sure that the goods you are trading reach the destination from the origin without any hassles and intact.
One of the best ways to achieve this and stop any loss you may incur is by having insurance. We all know the cost of insurance is quite high that many traders and business owners resist to take one. If you are one, you really need to understand the only way mitigating certain perceivable losses can be done by insurances. For your convenience, we have highlighted some of the very important insurances suitable for your business; do take a look:
1. Currency Conversion
One of the major factors that contribute to loss, if not taken seriously, is the currency conversion charges. As we all know, the conversion rates keep changing and it can definitely add to your stress if the rates go south. Also, there is no way to predict how the currency rates would change. When you initiate a deal the price would be something and when things come to an end currency rates would be different. To avoid any losses you could opt in for the currency conversion insurance which will come in handy when the rates are not in your favour.
2. Employees
Once you hire people to work for you they become your responsibility. Their good health on the job and their families become your liability. In an import export business there can be many goods that maye hazardous to humans that still have to be transported. It is for your safety that you insure all your employees. Should something go south and your employees are injured somehow this insurance will ocme in handy. All you have to do is check with your lawyer and make sure you get the right insurance with the right terms and conditions and no fine prints get to you.
3. Marine Cargo
Today most cargos are sent after agreeing to certain terms and conditions between the sender and the receiver. On the contrary to the name, marine insurances cover goods once they leave the sender up until they reach the receiver. We all know, there are myriads of factors that cause a delay or damage to the goods sent. It is necessary to insure your goods comprehensively against delays, losses, damage, and even some wars, riots, etc. Having marine insurance will not only cover any losses or damage, they will also compensate for your profit, goods sent, and the manufacturing cost. So, don’t miss out on this.
4. Export Credit Risk
Export Credit Risk insurance is one of the must-haves in this business. It comes in handy when your international customer fails to make an entire payment for the goods or services availed. This is a major risk that scares many new entrants to venture into this line of business. Export credit risk insurance offers the kind of relief one expects to have when running an import export business.
