TRADE CREDIT INSURANCE
Credit Insurance covers your business against losses arising from the insolvency or default of a trade customer to whom credit has been extended.
To provide such cover the Insurer combines:
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•Information and opinion on the financial status and credit standing of customers to inform Policyholders about the perceived viability of a potential customer. The information is drawn from: public sources such as Companies House (and its overseas equivalents); advertised events, e.g. CCJ’s/Winding Up Petitions etc; from a network of status agents; as well as direct dialogue and from reports on current payment performance.
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• An in-house, or designated credit collection service (available in the price, or at subsidised cost) and accessible in the event of a customer’s failure to pay.
The Policy can, in principle, incorporate all customers - a customer - or key customers inside or outside the UK.
Whilst the standard policy covers invoiced and delivered goods, it can be extended to include losses incurred in a manufacturing process prior to delivery or where there is a lead in time between your order and delivery to the customer.
The credit insurance policy normally pays 90% of the insured, VAT exclusive, account balance if the insured customer enters insolvency, or defaults, on an undisputed debt, subject to any excess or variation to the standard 90% indemnity negotiated when structuring the policy.
