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Indemnity Explained: What Is Covered and to What Extent
Trade credit insurance does not typically cover 100% of a loss.
Instead, it provides partial coverage based on an agreed percentage.
What is indemnity?
Indemnity is the percentage of the loss that the insurer agrees to cover in the event of non-payment.
How does it work?
If a loss occurs, the exporter receives a portion of the insured amount based on the agreed indemnity level.
The remaining portion is retained by the exporter.
Why does this matter?
Indemnity ensures:
- Shared responsibility between exporter and insurer
- Responsible credit management
- Balanced risk distribution
A simple example
An exporter has an indemnity level of 90%. If a loss of AED 1 million occurs, the exporter may recover AED 900,000, while retaining AED 100,000.
How Etihad Credit Insurance (ECI) helps
Etihad Credit Insurance (ECI) supports exporters by:
- Structuring indemnity levels based on risk profiles
- Providing clarity on coverage percentages
- Supporting balanced risk management
👉 Explore ECI’s trade credit insurance solutions.