Surendar Singh, Associate Professor, International Business Area, FORE School of Management, echoes the same views. “Insurance cover is particularly important for MSME exporters to mitigate potential risks, such as loss of cargo, defaults by buyers, economic sanctions, floods and wars, among others. MSMEs need to understand the importance of insurance coverage in international trade transactions as they are highly dependent on third parties for their supply chain management. Thus, any kind of interruption or commercial risk related to third parties can significantly impact their business. In fact, it can turn their profit-making into a loss-making transaction,” says Singh.