Buyer Default Protection
Protects against eligible losses when a buyer fails to pay covered trade receivables within the period specified under the policy.
Trade Credit Insurance
Protect Your Receivables. Trade With Greater Confidence.
Trade Credit Insurance protects your business against customer insolvency or prolonged default, helping you secure receivables, safeguard cash flow and trade with greater confidence at home and abroad.
Protection Against Buyer Default
Receivables & Cash Flow Protection
Insolvency Risk Protection
Credit Risk Management
Support for Business Growth
What Is Trade Credit Insurance?
Understanding Trade Credit Insurance
Trade Credit Insurance protects businesses against customer non-payment on credit sales, covering eligible receivables against risks such as buyer insolvency or prolonged default, subject to policy terms, approved credit limits and exclusions.
What Does It Cover?
- Buyer insolvency
- Protracted or prolonged default
- Non-payment of eligible trade receivables
- Protection against selected commercial credit risks
- Credit monitoring and risk assessment support
Example:
If a business supplies goods to a customer on credit and the customer subsequently becomes insolvent or fails to pay within the applicable period, Trade Credit Insurance can help protect the insured receivable against the covered loss, subject to the policy terms and conditions.
Coverage Components
Comprehensive Protection At Every Level
Buyer Insolvency Protection
Protects against covered losses when an insured buyer becomes insolvent, subject to policy terms and exclusions.
Protracted Default
Where covered, provides protection when an eligible buyer fails to make payment beyond the applicable waiting or default period specified in the policy.
Receivables Protection
Helps businesses protect eligible outstanding trade receivables arising from the sale of goods or provision of services on agreed credit terms.
Credit Risk Assessment
Trade Credit Insurance programmes can include buyer assessment and credit-limit management, helping businesses make informed credit decisions.
Domestic & Export Trade Protection
Cover can apply to domestic or international receivables, subject to geographical limits, approved buyers and policy conditions.
Political Risk Protection
Selected political risks affecting payment may be considered for eligible international trade, subject to policy wording and underwriting.
Advisory Support
Protect Your Receivables Before Risk Finds You
Delayed payments strain cash flow. We structure Trade Credit Insurance around your customers, trading terms and credit exposures.
- 1.
Credit Risk Assessment & Needs Analysis
We understand your customer portfolio, sales on credit, payment terms, outstanding receivables, territories, and buyer concentration.
- 2.
Policy Design & Placement
Our specialists structure suitable credit limits, deductibles and waiting periods, and place the risk with appropriate insurers.
- 3.
Buyer & Policy Documentation Support
We coordinate buyer information, credit-limit requirements, policy documentation, and other information required for implementation.
- 4.
Dedicated Claims Advocacy
Our team supports claims for covered non-payment, including documentation, insurer coordination and settlement support.
- 5.
Annual Policy Review & Renewal
Regular reviews assess changes in buyer exposure, sales and credit limits to keep the programme aligned with your business.
Ready To Explore Trade Credit Insurance?
Protect your trade receivables and strengthen your business against the financial impact of buyer default.
Frequently Asked Questions
Answers to Common Insurance Queries
High dependence on a small number of buyers can create significant accumulation, requiring careful assessment of individual buyer limits and portfolio concentration.
Credit terms, payment history, financial strength and external credit indicators influence the probability and severity of non-payment.
Equirus Raghnall evaluates buyer concentration, receivables profile, payment terms, debtor quality and historical bad debts before negotiating appropriate insurer capacity.
Buyer information and exposure are presented to insurers to negotiate appropriate limits, terms and amendments as the receivables portfolio changes.
