COTUNACE: export credit insurance to sell olive oil with
Are you exporting olive oil and afraid of not being paid by a distant buyer? Export credit insurance covers precisely this risk. In Tunisia, the reference body is COTUNACE (Compagnie tunisienne pour l'assurance du commerce extérieur). This guide explains what it covers (usually 80-90% of the unpaid debt), the difference between commercial risk and political risk, the keystone of the scheme — buyer approval — and how to combine this insurance with your payment methods. Tables, steps and FAQ included.
Free PDF cheat sheet: the risks covered + the buyer approval steps + the claim file checklist on one page. Get it by email »
What is export credit insurance?
Short answer: export credit insurance protects the exporter against non-payment by their foreign customers. If the buyer does not pay (bankruptcy, default, but also war, non-transfer of currency…), the insurer indemnifies the seller, usually up to 80-90% of the unpaid receivable. In Tunisia, this coverage is provided by COTUNACE.
For a bulk olive oil exporter, credit insurance turns a sale on credit — open account, documentary collection D/A — from a risky bet into a controlled operation. It does not replace a good payment method: it complements it. The acronyms (COTUNACE, D/A, LC, political risk…) are defined in the glossary.
What COTUNACE credit insurance covers
Credit insurance distinguishes two broad families of risk.
| Type of risk | What it covers | Examples |
|---|---|---|
| Commercial risk | Default of the private buyer | Insolvency, bankruptcy, prolonged payment default |
| Political risk | Events linked to the buyer's country | Non-transfer of currency, moratorium, war, government decision |
| Manufacturing risk (depending on policy) | Interruption of the contract before delivery | Order cancellation attributable to the buyer |
- Guaranteed percentage: usually 80-90% of the receivable; the balance (10-20%) remains the exporter's responsibility (deductible), to maintain vigilance.
- Scope: sales on credit abroad (open account, D/A, sometimes short term).
- What it is NOT: it is neither transport insurance (damage to the goods), nor a quality guarantee — it is coverage of the non-payment risk.
Exact figures and scope to be confirmed directly with COTUNACE according to your policy and markets. Compare the cost of coverage with the export cost calculator.
Key point: credit insurance covers the risk of not being paid, whether it comes from the buyer (commercial) or their country (political). It is distinct from transport insurance and the letter of credit.
Box: seller's side / buyer's side
Credit insurance is first a seller's tool, but it also changes the commercial relationship.
| Angle | What credit insurance changes for you | Reflex |
|---|---|---|
| Seller (exporter selling) | You can sell on credit without bearing all the non-payment risk | Get each buyer approved before delivering |
| Exporter (operational in Tunisia) | You must respect the policy conditions (limits, reporting deadlines) | Keep your limits and per-buyer files up to date |
| Buyer (importer) | You can obtain credit terms without imposing an LC | Provide the information enabling your approval |
Shared golden rule: credit insurance does not replace prudence. You do not insure a bad buyer: the insurer approves (or refuses) each customer, which is also a quality filter on your portfolio.
Buyer approval: the keystone
Direct answer: before covering a sale, the insurer approves the buyer — meaning it analyzes their solvency and sets a guaranteed credit limit (the maximum amount covered for that customer). Only sales within this limit are indemnifiable. Selling beyond it means selling uncovered.
The coverage steps:
- Subscription: the exporter signs a credit insurance policy.
- Approval request: for each buyer, they request a coverage agreement (the insurer assesses the customer's solvency).
- Limit: the insurer sets a maximum guaranteed amount per buyer (and may reduce it if it deteriorates).
- Covered sale: the exporter sells within the approved limit.
- Claim: in the event of non-payment, they report the claim within the deadlines set by the policy.
- Indemnification: after review, the insurer pays the indemnity (usually 80-90% of the guaranteed receivable).
Selling beyond the approved limit or to a non-approved buyer means not being covered. Respecting the limits is the basic discipline of credit insurance.
Credit insurance, letter of credit, transport insurance: don't confuse them
Three different protections, often confused:
| Protection | Against what | Who commits |
|---|---|---|
| Credit insurance (COTUNACE) | The buyer's non-payment (unpaid debt) | An insurer indemnifies (80-90%) |
| Letter of credit | The risk that the buyer does not pay for this sale | A bank pays against documents |
| Transport insurance | The damage/loss of the goods in transit | An insurer covers the material loss |
- The LC secures one specific sale, via a bank and compliant documents — see the letter of credit guide.
- Credit insurance covers a flow of business and the non-payment risk, including for sales without an LC (open account, D/A).
- Transport insurance (often 110% of the CIF value) does not concern payment but the goods themselves.
Tip: combine the tools. An open-account sale insured by COTUNACE can be more competitive than an LC, while remaining controlled. See the international payments guide.
When to take out credit insurance?
- Sales on credit (open account, documentary collection D/A): this is the main use case — no bank guarantees payment.
- Risky markets (unstable country, non-transfer risk): the political risk alone justifies coverage.
- Commercial development: it lets you offer payment terms to new customers without exposing your cash flow, therefore winning markets.
- Customer portfolio: beyond a single sale, it secures a recurring flow of business.
Conversely, a sale paid in advance (deposit + balance) or by confirmed LC is already strongly secured: credit insurance adds less value there.
Mistakes to avoid with credit insurance
- Selling to a non-approved buyer thinking you are covered: without approval, no indemnification.
- Exceeding the guaranteed credit limit: the fraction beyond the limit is not covered.
- Reporting a claim too late: the policy's reporting deadlines are mandatory.
- Believing credit insurance covers quality or transport: it covers non-payment, nothing else.
- Neglecting the deductible: 10-20% of the receivable remains your responsibility — insurance is not 100% coverage.
- Forgetting to update the limits when the volume of business with a customer increases.
- Treating insurance as a substitute for prudence: a buyer refused by the insurer is a warning sign to take seriously.
Golden rules
- Get each buyer approved before selling to them on credit.
- Respect the guaranteed credit limit per customer — never sell uncovered beyond it.
- Report any non-payment within the deadlines set by your policy.
- Combine credit insurance and payment method according to the risk (insured open account vs confirmed LC).
- Factor the cost of coverage into your selling price.
- Listen to the insurer: a refusal of approval is valuable commercial information.
International payments guide » — to choose the payment method to combine with your coverage.
FAQ — COTUNACE export credit insurance
What is COTUNACE?
COTUNACE (Compagnie tunisienne pour l'assurance du commerce extérieur) is the Tunisian reference body for export credit insurance. It covers exporters against non-payment by their foreign customers, whether commercial in origin (buyer default) or political (country risk).
What does export credit insurance cover?
The non-payment risk: buyer default (commercial risk) and events linked to their country (political risk: non-transfer of currency, war, moratorium). Indemnification usually reaches 80-90% of the guaranteed receivable. It is neither transport insurance nor a quality guarantee.
What percentage of the unpaid debt is covered?
Usually 80 to 90% of the guaranteed receivable; the balance (deductible of 10-20%) remains the exporter's responsibility, to maintain vigilance. The exact rate depends on the policy and market — to be confirmed with COTUNACE.
What is buyer approval?
It is the coverage agreement given by the insurer for a given customer: it assesses their solvency and sets a guaranteed credit limit. Only sales within this limit are indemnifiable. Selling to a non-approved buyer means not being covered.
Difference between commercial risk and political risk?
Commercial risk concerns the default of the private buyer (insolvency, bankruptcy, prolonged default). Political risk concerns the buyer's country (non-transfer of currency, war, moratorium, government decision). Credit insurance can cover both.
Does credit insurance replace the letter of credit?
No, they are complementary. The LC secures one sale via a bank and compliant documents. Credit insurance covers a flow of business and the non-payment risk, including for sales without an LC (open account, D/A). You can combine the two.
Do I need credit insurance if I sell by confirmed LC?
It is less of a priority: a confirmed LC is already strongly secured (a Tunisian bank commits). Credit insurance mainly adds value on sales on credit (open account, D/A) or toward risky markets not covered by an LC.
Does credit insurance cover damage to the goods?
No. Credit insurance covers non-payment, not the goods. Damage or loss in transit falls under transport insurance (often 110% of the CIF value), a separate contract. See the transport & packaging guide.
What happens in the event of non-payment?
You report the claim within the deadlines set by your policy. After review, the insurer pays the indemnity (usually 80-90% of the guaranteed receivable). Respecting the reporting deadlines and the approved limits is essential to be indemnified.
Can you insure any buyer?
No. The insurer approves or refuses each buyer according to their solvency, and sets a limit. A refusal of approval is a useful warning sign: it prevents you from selling on credit to a customer deemed unlikely to pay. It is also a quality filter on your portfolio.
Does credit insurance help win markets?
Yes, indirectly. It lets you offer payment terms (open account) to new customers without exposing your cash flow, which makes you more competitive against competitors who demand an LC or advance payment.
How much does export credit insurance cost?
The cost (premium) depends on the insured volume, the markets, the buyers' risk and the policy conditions — it is priced case by case with COTUNACE. Factor this premium into your selling price; it remains low relative to the risk covered.
Sell on credit without risking your cash flow
You know what credit insurance covers, how buyer approval works and how to combine it with your payment methods. The next step: structure your sales terms and cost the coverage.
International payments guide » then export cost calculator ».
Request a free quote — a dated quotation, with payment and security terms suited to your market. Drawer pre-filled "COTUNACE guide".
Free PDF cheat sheet (lead magnet): receive by email the "COTUNACE export credit insurance" cheat sheet — the risks covered, the buyer approval steps and the claim file checklist, ready to print. Simple sign-up (Brevo double opt-in), no spam. Get the PDF cheat sheet »
To go further, read the international payments guide, the letter of credit guide and the prices and margins guide.
Data July 2026, indicative and to be re-checked before any commitment. Sources: COTUNACE (Tunisian export credit insurance), credit insurance practices (commercial/political risk, guaranteed percentage), to be confirmed according to your policy.
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