Trade Credit Insurance

Principal Customers

Key facts

An extension of the single account concept, allowing a business to select specific named customers for insurance on the basis of either indebtedness above an agreed level, or other agreed criteria that identify them from other customers.

Insurers will need to understand the basis of selection and will not permit selection simply on the basis of poor risks.

Policy period

12 months.

Risks covered

Always insolvency only but default may be possible in addition.

Insurer credit limits

Cancellable but usually with a notice period if insurers wish to reduce or cancel. The policyholder has the option to add or remove insured customers during the policy period.


Based on sales turnover to the insured customers but maybe  adjustable if insured customers are to change over the policy period. Fixed premiums may be available.

Trade credit insurance overview