Why does trade credit insurance improve business relationships? Because it provides assurance that payments will be made on time, fostering trust and collaboration. With bespoke trade credit insurance, businesses—especially those trading internationally—can gain confidence and explore new opportunities. We also offer specialized products tailored for banks and commodity traders.
What Does Trade Credit Insurance Cover?
Trade credit insurance protects sellers against buyers’ non-payment due to insolvency or prolonged default. Policies are typically structured based on sales turnover and can include:
- Whole-turnover coverage
- Selective accounts
- Single contract
- Domestic/export coverage
- Political risk
- Special risks
Factors Influencing Trade Credit Insurance Pricing:
- Existing credit management practices and losses
- Client portfolio
- Contract disputes
- Arbitration outcomes
- Currency risks
- Trade disruptions
Howden can help evaluate each client’s risks and provide a cost-effective, customized insurance package. While reducing premiums is a priority, we emphasize the importance of comprehensive coverage to avoid unexpected exclusions when claims arise.
Protecting Your Key Financial Asset
A company’s unpaid sales ledger can represent up to 40% of its value, making trade credit insurance crucial. A tailored approach to coverage is often more cost-effective than a blanket policy covering all sales with uniform terms and conditions, as every client and deal is unique.
Why Choose Tailored Trade Credit Insurance?
Customizing your policy allows flexibility to meet diverse client needs, such as applying different deductibles for various clients. Trade credit insurance isn’t just about defaults or insolvencies; it also provides valuable market insights that help direct sales efforts toward clients with a solid payment reputation.
Expert Knowledge and Representation
Navigating trade credit insurance involves understanding numerous variables, such as differing policy definitions for supplier disputes. Engaging an experienced broker like Howden ensures you get the right cover, with expert insights to protect your interests.
A Strategy for Growth
Solid trade credit insurance is more than just protection; it is also a strategy for growth, enabling businesses to expand with confidence.
