Many businesses sell goods or services on credit. A trade credit policy will protect them from losses due to non-payment or delayed payment by their customers.
If a customer is unable to pay, whether due to insolvency, financial hardship, or other difficulties, the knock-on effect can be severe. Trade credit insurance supports cash flow and provides a safety net for businesses when customers default on payments.
Protection against bad debt. If customers can’t pay, your business can recover a percentage of unpaid debts.
Encourages growth. You will have the confidence to extend credit to customers, particularly for international trade.
Improves cash flow. You will be compensated for unpaid invoices.
Improves access to finance. Your business will be seen as more secure by lenders.
Stronger customer credit management. Insurers will assess and monitor the credit-worthiness of buyers.
Protection against political and economic risks. Particularly valuable for valuable for international trade.
Our trade credit insurance includes the following:
Counterparty default. Protection against non-payment, late payment, insolvency.
Contract frustration. Protection against the inability to complete a trade contract.
Civil risks. Protection against riots, strikes, civil commotion and malicious damage.
Political risks. Protection against insurrection, rebellion, revolution, mutiny, civil war and war.
Terrorism. Protection against covert isolated attack, asymmetrical warfare and cyber warfare.
Abandonment. Protection against confiscation, expropriation, nationalisation and deprivation.
Trade credit insurance FAQs
Who should consider trade credit insurance?
Any business that provides products or services on credit terms can benefit from trade credit insurance. It is particularly useful for international trade and businesses with significant receivables or exposure to a few large customers who might default.
What is the typical reimbursement rate?
Policies will generally reimburse 80-95% of approved losses.
What information do I need to provide to get insurance?
You must provide financial statements, customer background and credit exposure, and your business’s trading history and details of any bad debt.
Can trade credit insurance help me obtain financing?
Yes. Lenders often view trade credit insurance as a safeguard when providing credit lines.
Can trade credit insurance include debt collection services?
Yes. Some insurance policies will include debt collection as part of the service.