Long-term Insurance

Long-term Insurance in foreign trade typically refers to insurance arrangements with a contract term exceeding one year (commonly 3 years, 5 years, or even longer), mainly used in export credit insurance, overseas investment insurance, long-term cargo transportation or engineering project insurance, etc. Its core features include a long coverage period, installment premium payments, and relatively stable underwriting risks. It is often used by enterprises to provide long-term risk protection for continuous export business or large complete equipment exports. Use cases include: exporters signing long-term export credit insurance agreements with institutions such as Sinosure to cover multiple buyers or multiple contracts; overseas engineering contracting projects insuring long-term engineering all risks; and cargo transportation insurance under long-term supply agreements. Notes: Long-term insurance rates are usually lower than per-transaction insurance, but attention should be paid to the maximum compensation limit, exclusions, exchange rate fluctuation clauses, and early termination penalties in the contract; at the same time, a distinction should be made between long-term insurance and Single Transaction Insurance, the latter covering only a specific batch or contract, with high flexibility but higher cost. The difference from Open Cover is that Open Cover usually has no fixed term or is automatically renewed, while long-term insurance has clear start and end dates and a minimum premium commitment.