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Small Business Policy

The Small Business Policy (SBP) is tailor-made for exporting companies with an annual turnover of less than HK$50 million, covering contracts of sale they have with their overseas buyers. The SBP provides a range of flexible arrangement to assist Hong Kong exporters in developing overseas markets.

Major Benefits
  • Annual policy fee waiver
  • Premium discount of 20%
  • Covers pre- and post-shipment risks with maximum liability up to HK$10mn
  • Shortened waiting period for claim payment under HK$500,000 in buyer default cases to 3 months
  • Simplified declaration procedures

Optional Arrangement
  • Selective cover for specific buyers or markets
  • Flexible indemnity ratio (60%, 70%, 80% or 90%)

Scope of Cover

The SBP covers domestic exports, re-exports from Hong Kong or direct exports from places outside Hong Kong. All shipments made under contracts concluded on payment terms of Documents Against Payment (DP), Documents Against Acceptance (DA) and Open Account (OA) are covered.

Risks Covered

Risks covered can be classified as buyer risks and country risks.

Buyer risks
  • Bankruptcy or insolvency
  • Default in payment
  • Failure or refusal to take delivery of goods

Country risks
  • Blockage or delay in foreign exchange remittance
  • Import ban
  • Cancellation of import licence
  • Payment moratorium
  • War, revolution, riot and natural disaster

Shipment Declaration
Policyholders are free to declare their shipments per invoice, or declare the sum of invoice values once a month for each buyer.

  • For all events of loss, policyholders are entitled to flexible indemnity ratio (60%, 70%, 80% or 90%).
  • For insolvency or bankruptcy of the buyer, claims are settled as soon as all relevant documents are submitted.
  • Where the buyer fails to pay for goods he has taken delivery of, claims are settled 4 months from the due date of payment, or 3 months after the due date of payment if the claim payment is under HK$500,000.
  • Where the buyer fails or refuses to take delivery of the goods, claims are settled immediately after the resale of goods.
  • For any other event of loss, claims are settled 4 months after the occurrence of the event.

Premium Rates

Premium rates are calculated on the basis of the volume of insurable business, the spread of risks, the destination and the terms of payment. In general, the riskier the country and the longer the credit periods, the higher the premium rates.

Major Benefits
  • Insurance protection
  • Credit assessment and monitoring
  • Useful collateral for export financing
  • Assisting in solving payment problems


All information provided to the Corporation will be kept strictly confidential. ECIC staff is required to take an oath of secrecy as provided under Section 31 of the Hong Kong Export Credit Insurance Corporation Ordinance (Chapter 1115). The Corporation is a “public body” under the Prevention of Bribery Ordinance. Staff members are not permitted to accept any advantage from customers. Anybody offering any advantage to the staff for any assistance in their capacity as public servants under the Ordinance commits an offence.

Click here for application.

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