Taking on customers in new markets can bring with it a level of uncertainty but a policy provides protection should a customer fail to pay because they have become insolvent, entered a protracted default or become unable to pay due to political risks such as currency problems, unrest or expropriation. “Credit insurance acknowledges that even stringent checks can’t anticipate the myriad difficulties that can hit a buyer, from financial problems, lawsuits or a failed product launch through to trouble collecting money from end-customers who may be several steps down the chain and located abroad,” says Michael Watson, Head of Commercial Insurance and Investments at HSBC.