The capital goods credit insurance (IKV) is a special variant of the consumption credit insurance (WKV). It protects plants, factories, airplanes, ships, etc. against the consequences of a demand loss in the case of the supply of capital goods in the sense of machines. With the IKV can goods deliveries be insured at home and abroad. Like also the consumption credit insurance the IKV covers only the economic risk. Political risks can be secured by the export credit warranty of the Federal Republic of Germany.

Differences to the consumption credit insurance

Since with these merchandise of the rendering of invoice up to the final payment usually several months or years are, one also generally speaks of a long period business (contrary to short or central period business with running times of days or few weeks, which can be secured by a WKV). Because of that comparatively long running times, the risk of a demand loss is much higher due to pecuniary difficulties or the insolvency of the customer with capital goods.

Production risk

Already during production (thus before distribution) the insolvency of the customer can occur. In this case it does not come to a demand loss in the sense of the credit insurance, since the commodity was not supplied. Production (e.g. a ship) however already represents a substantial financial investment of the manufacturer. Since it usually concerns a special preparation, the costs already resulted can be brought in only in the rarest cases by the sales of the commodity to another customer again. This so-called production risk can be likewise secured in the context of a capital goods credit insurance. In addition before commencement of production the pure manufacturing costs estimated, then depending upon Produktionsstand by the credit insurer will-see compensated also: Consumption credit insurance, credit insurance, export credit warranty

Related links

More for the security of capital goods HTTP: /www.agaportal.de/pages/aga/produkte.html export credit warranties of the Federal Republic of Germany HTTP: /www.ak-coface.de general credit insurance Coface AGhttp: /www.atradius.de Atradiushttp: Euler Hermes credit insurance AGhttp: /www.ruv.de R+V insurance AGhttp: /www.zuerich.de Zurich insurance AG

Articles in category "Capital goods credit insurance"

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