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Trade Credit Insurance

Trade Credit Insurance protects your business from a financial loss due to non-payment by customers.  This form of insurance protects your debtors ledger which can be one of the biggest assets on your balance sheet.

What is it?

If you sell trade or sell goods on a credit basis, you're at risk of a bad debt or non-payment by customers. This can disrupt your cashflow and leave you out of pocket.

Trade Credit Insurance is important for protecting your income and business assets against potential customer failure. With the right cover, you can grow your business confidently, knowing your protected if things go wrong.

Who needs Trade Credit Insurance?

All registered businesses that sell goods and services on credit terms, such as 30 days to pay, should consider credit insurance. This includes businesses that trade domestically and internationally.

Some trade credit insurance policies also off the bonus of working with designated collection agencies to help you recover your debts - taking the pressure of this difficult and time-consuming process.

What is covered?

The coverage can vary between each policy.  The policy benefits available include:

Comprehensive cover protecting your entire credit portfolio 

Excess of Loss cover for protection for major exceptional loss across your entire credit portfolio. This suits businesses who what to self insure that working losses that will occur in a normal trading environment.

Key Account cover for businesses that require protection for their largest buyers

Single Buyer which provides single buyer coverage for quality credit risks

What's not covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won't include cover for:

Failure to fulfil any terms and conditions of the contract or to comply with any provisions of law

Failure to obtain any import or export licence necessary for the performance of the contract

Any loss related to interest charges, penalties, legal costs and currency exchange rate charges

persons over the age of 75 unless agreed prior to the trip commencing

If you would like to get a quote for Trade Credit Insurance policy talk to one of our Crucial Insurance experts today.