Corporate Insurance
Credit Insurance
Sell on credit terms without carrying the whole risk of non-payment.
In short
Trade credit insurance protects your receivables when a buyer becomes insolvent or fails to pay within an agreed period. It typically covers a percentage of the invoice value on approved buyers, and comes with credit limits the insurer sets for each customer.
Overview
Receivables are usually the largest asset on the balance sheet and the least protected. One buyer failing can take the year with it.
Credit insurance does two things: it indemnifies you when an approved buyer does not pay, and it gives you the insurer's view of your customers' creditworthiness before you extend the terms. Many clients value the second as much as the first.
What is covered, and what is not
Typically covered
- Buyer insolvency
- Protracted default - non-payment beyond an agreed waiting period
- Domestic and export receivables, depending on the policy
- Political risk on export accounts, where added
- Debt collection support in many programmes
Typically excluded
- Sales to buyers with no approved credit limit
- Disputed invoices, until the dispute is resolved
- Amounts above the approved limit for that buyer
- Your own uninsured percentage, typically 10 to 20 per cent
- Sales outside the agreed terms of trade
Cover and exclusions vary by insurer and by the wording issued for your risk. We confirm the exact terms on the quotation before you buy.
Who needs this cover
Manufacturers, distributors, traders and exporters selling on open credit, particularly where a small number of buyers make up a large share of turnover. Lenders sometimes require it before financing receivables.
Why buy this through Trust Cover
Insurer-neutral advice
Quotations from several insurers, compared on wording and claims record, not premium alone.
Exclusions explained first
You see what is not covered before you buy, in plain language.
Claims handled by us
We prepare the file, submit it and chase settlement on your behalf.
Working with us
We are insurer-neutral. For every enquiry we approach multiple insurers, compare the wordings as well as the premiums, and tell you where they differ on the points that decide a claim.
After the policy is issued we stay involved: endorsements, mid-term changes, renewal reminders that start ninety days before expiry, and claims that we prepare, submit and follow to settlement.
Related cover
Cyber Insurance
Cover for the cost of a breach, a ransomware event and the downtime that follows.
Learn moreProperty Insurance
Fire, special perils and the trading income you lose while you rebuild.
Learn moreLiability Insurance
When a third party claims your business caused their loss.
Learn moreMarine Insurance
Goods in transit, by sea, air, road or rail - domestic and export.
Learn more