Trade Credit Insurance exists to mitigate against the risk of bad debts to enable your business to trade with confidence on credit terms. After all, your trade debtors are likely to be among your most valuable assets and that makes them well worth protecting.
Trade Credit Insurance exists to mitigate against the risk of bad debts to enable your business to trade with confidence on credit terms. After all, your trade debtors are likely to be among your most valuable assets and that makes them well worth protecting.
Customer Health Check
The Insurer’s analyse the credit worthiness and financial stability of your customers.
Credit Limit Calculated
Each of your customers is given a credit limit and this is the maximum amount that the insurers will pay out if your customer defaults.
Trading Limit Updates
The Insurer keeps you informed of adjustments to limits as they may be raised or reduced when trading conditions change.
Cover for Insolvencies
If one of your customers become insolvent then that’s the point at which a claim would be triggered.
Cover for Defaults
If your customer is a late payer and is defaulting on the credit terms offered by you, typically having invoices outstanding that are 60 to 90 days past due date, then depending on the policy the insurer should be notified.
A certain number of days after the notification, they will consider a claim. This is usually if the debt isn’t under dispute. It can be possible to have dispute cover too and in these circumstances the insurer will pay out regardless and recover the funds once the dispute is resolved.
More Information
We work with Allianz to provide our customers with the best trade credit insurance solutions. Allianz have a useful page dedicated to explaining trade credit insurance, if you are at risk from your customers, and how it can help in times of uncertainty: click here.
To discuss any aspect of your insurance requirements with us, please contact us and one of our dedicated Account Executives will be in touch to assist you further.
R.K. Henshall © 2024
R K Henshall & Co Ltd are Independent Intermediaries and are authorised and regulated by the Financial Conduct Authority. Registration Number: 308865. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, A.Brown FCCA. Written quotations, policy terms, conditions and exclusions are available on request.
Company Secretary: A.Brown FCCA. Registered No. 01285024
R K Henshall are very proud to support Lupus UK. Lupus UK is a charity very close to our hearts. Unfortunately, Nita Davies who had been a stalwart of our company from it’s very beginning lost her battle against this terrible illness in 2013. Lupus UK is the only National Charity which supports people with the immune system illness. (Registered charity nos. 1051610, SC039682) Click here to read more about Lupus UK.
