Commercial Insurance

Commercial Insurance in foreign trade refers to insurance policies that importers and exporters purchase from commercial insurance companies to cover cargo transportation, credit risk, product liability, etc. It is distinct from government-provided policy insurance (such as the policy-oriented business of China Export & Credit Insurance Corporation). Common types include marine cargo transportation insurance (Free from Particular Average, With Particular Average, All Risks), commercial export credit insurance, product liability insurance, etc. Usage scenarios: When the buyer and seller agree that one party is responsible for obtaining insurance, the insurance coverage, insured amount (usually 110% of the invoice value), and claim settlement location must be clearly specified. Precautions: It must match the trade term (e.g., CIF, CIP); under CIF, the seller must insure against the minimum coverage; the insurance policy date must not be later than the bill of lading date; pay attention to exclusions and deductibles. Compared with 'policy insurance,' commercial insurance is profit-oriented with market-based rates, but its coverage is more flexible. Foreign trade practitioners should carefully review insurance clauses to ensure coverage of the entire transportation journey and potential risks.