International credit insurance deals with payment risks from business buyers located or established in a different country than the seller. This type of insurance tends to have higher rates than domestic policies. International credit insurance is generally more difficult to formulate for the underwriter because the risks inherently found in countries, currencies, and cultures must be carefully assessed before an international credit insurance policy can be issued. Determining the appropriate level of risk generally requires considering all three factors simultaneously.

Credit insurance generally covers payment risks that result from trading or making sales exchanges on credit with buyers. The coverage is called export credit insurance if only exports are insured. Many possible risks can arise if payment is owed by buyers from other countries.

In addition to credit issues, many instances may occur that could prevent payment from taking place. Riots, wars, political strife, and other changs may affect whether or not payment can be expected. An export credit insurance policy guards against these types of financial risks.

Some of the more substantial risks associated with international credit insurance are those of increasing global competition and nationalistic governmental policies. Governments tend to mandate policies that self-serve, such as import tariffs; however, this many discourage global trade. Risk assessments are generally carried out to include these factors in the final coverage.

Political risk coverage once was generally acquired only through specialized government programs. This resulted in a need for the customer to obtain two separate and distinct international credit insurance policies. Having separate policies for trade and export usually required additional administration and awareness of differences in the conditions and requirements set by each policy. Dual coverage is typically offered by private insurers rather than governmental agencies.