Types of Trade Credit Insurance
Listed below are the types of credit insurance products and cover we offer for your business.
whole turnover Credit Insurance
This is the most popular credit insurance as it can be tailored to meet virtually any circumstance. Whole Turnover credit insurance offers cashflow protection following a bad debt or customer default in the UK or abroad.
An insurer will cover all eligible business contracts over a 12 month period. The policy holder can set the credit limit on the majority of customers, with larger credit limits agreed by the insurer. Typical cover is 90-95% and a small individual excess will eliminate small claims.
Premiums are calculated as a percentage of the insured turnover, based on past loss experience, future trade levels and overall level of cover sought.
For more information on Whole Turnover Credit Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838.
Catastrophe Credit Insurance or Excess of Loss
Catastrophe Credit Insurance is suitable for larger companies with turnover of £10 million who need to prepare for severe losses of debt that exceed their normal bad debt levels.
Companies must undergo an in-depth assessment of their credit control procedures and if found to be acceptable they are granted high levels of discretion. 100% indemnity is available and insurers' credit limits are often non-cancellable.
Premiums are based on levels of self insurance, past loss history and overall level of cover sought.
For more information on Catastrophe Credit Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838
Single Buyer Credit Insurance
This credit insurance covers an exceptionally high single credit exposure and avoids the domino effect of a major customer insolvency or default.
Alternatively it can be used to secure 'top up' insurance on a major customer, where your main insurer can't accommodate your full requirements (this needs prior approval of your main insurer).
Premiums can be variable or fixed, policy periods are by negotiation and even single contracts can be covered. Typical cover 90-95%.
For more information on Single Buyer Credit Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838.
Principal Customers Credit Insurance
Similar to single buyer credit insurance but allows you to insure your top customers. You can even include developing customers when their exposure exceeds a pre-agreed level during the year. Policy periods vary, but tend to be 12 months or are contract specific.
For more information on Principal Customers Credit Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838.
Captives and Group programmes
This type of credit insurance is good for large organisations with businesses in multiple locations.
A captive insurer concentrates the buying power within the insurance market. This reduces the premiums paid to a third party insurer so most of the premium is retained 'in-house' by the captive. Credit insurers can support this approach by providing re-insurance to the captive. Otherwise they can provide expertise on credit decisions based on either a whole turnover or catastrophe basis.
For more information on Captive Credit Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838.
Political risks and medium term insurance
Political risk insurance protects you against political and economic events overseas, these risks could include shortage of foreign exchange, licence cancellation or contract frustration as a result of political unrest (including governmental action, war or embargo).
Limited political risk cover is provided by most insurers offering whole turnover, catastrophe, single or principal customer cover on overseas trade.
More comprehensive and project related political risk cover is available from specialist insurers.
For more information on Political Risks Insurance or guidance on credit insurance please contact us via the contact form or ring us on 0845 456 8838.
