Credit Insurance
Here to protect trade, keep businesses moving and support funding requirements.
What is Trade Credit Insurance?
Credit insurance provides cover to commercial policyholders against the impact of sustaining bad debts due to the insolvency or non-payment of commercial customers, for goods and/or services provided to them on open account credit terms.
The debtor book – the amount owed by its customers – represents around 40% of a business’ assets. Sustaining a bad debt can be catastrophic, as the unpaid debt is no longer lost sales, but lost profit. A business will have to generate many fold additional sales to recoup a bad debt.
Types of Trade Credit Insurance
Whole Turnover
The Most Comprehensive
The most traditional policy option, accommodating the entire debtor book. Usually indemnifying 90% of the insured debt – excluding VAT – and with a low excess deductible for around £1,000 per claim.
Selective/Single Risk
Tailor Made
Cover can be restricted to buyers of your choice, a particular part of your turnover, or even a single customer or contract that you would like covered. These policies can be tailor made to suit you, and we can arrange for quotes upon request.
Media Policy
Tailored for the Media Industry
This policy covers services including advertising, PR, and multimedia with industry specific features like forward bookings, WIP for production work, & 95% Indemnity. Protects against losses from client insolvency, default, or political events.
Fixed Contract Cover
Long Term Contract Security
For specific contract commitments with buyers for up to 3 years. This policy protects you against the risks of non-payment of invoices, as well as work-in-progress costs. Each individual contract forms the basis for a policy and the cover is fixed throughout the contract.
Lease Cover
Capital Equipment – Capital Exposure
Protects against the risk of non-payment of instalments under leasing agreements. The cover is fixed throughout the tenure of each agreement for up to 5 years.