Protect a large and vital business asset. This policy pays you if a customer defaults on payment. In this way it ensures a steady cash flow and mitigates an important business risk.
Trade credit insurance covers default for several reasons ranging from political situations, currency demonetization, license cancellation or exchange rates fluctuations. Defaults by public sector units can also be insured.
Trade Credit Insurance protects defaults even if your customer goes bankrupt. The reason for bankruptcy is not relevant. This is particularly relevant for a fragmented customer base that is exposed to economic cycles.
By taking trade credit insurance policy, you will cover all the risk of default by your customers. This will ultimately keep your bad debt level low, which further helps grow the business. Remain focus on business’s core activities and don’t worry about payment defaults.
Trade credit insurance (TCI) is a means of protecting your business against liabilities arising from your customers’ inability to pay for products or services due to several reasons such as bankruptcy, insolvency, political upheaval, etc. where the trade partner operates.
Credit insurance is also referred to as accounts receivable insurance, debtor insurance, or export credit insurance. It helps businesses protect their capital and cash flow. It can also help them secure financing terms with banks because of the surety that their customers’ accounts receivable will be repaid on time.
An insurer takes into account a lot of factors such as business risks, volume of trades, creditworthiness of the buyers, industry of operation, repayment terms and so on when deciding on the cost for a trade credit insurance. And the coverage costs are typically less than 1% of the sales volume for such an insurance. So, as with any insurance, for a trade credit insurance also the cost is a projection of risks that the policyholder can pose to the insurer.
Also, under the trade credit insurance businesses have the option to modify the coverages based on their budget. For instance, they can choose to cover a large client in particular or select to cover a number of clients based on the business requirements. Such a policy also has provision for secondary coverage that comes to play when the primary cover is fully utilized in the form of claims. Based on the financial capabilities of the clients covered by the business partner, insurers decide on the credit limit. So, under a trade credit policy if a buyer fails to pay for the goods and services then the insurance company covers for the losses up to the indemnity ceiling.
Moreover, such an insurance also covers for political risks wherein firms that operate in unstable regions, multinational corporations, large hospital chains, etc. who hold large liability associated with them can stay protected from financial obligations.
Below are the benefits of a credit insurance trade policy:
A trade credit insurance policy, as you already know, is a very customized product and needs specific requirements and details to be captured before moving ahead with the process. SecureNow, as your insurance advisor, can help you get insurance from the top insurers who deal with a credit insurance policy such as SBI General, HDFC Ergo, Bajaj Allianz, New India Assurance. You just have to submit your basic details in the form above along with your estimated insurance turnover and the industry of operation, then you’ll be shown an estimated trade credit insurance premium to give you an idea of the coverage and the cost. We would request you to go ahead and click on buy now and an insurance expert will get in touch with you to capture your requirements and provide quotations for the best credit insurance. Additionally, you can write to us on firstname.lastname@example.org an expert will get in touch with you.
A trade credit insurance policy can cover for your business from commercial and political risks. Below are the coverage details:
Note: These are just an indicative list. Read the policy wordings carefully to get the details of all the inclusions under your policy.
There are some exclusions under the trade credit policy:
Note: These are just an indicative list. Read the policy wordings carefully to get the details of all the exclusions under your policy.
Claim settlement process for a trade credit insurance is simple with SecureNow. You’ll have to drop an email at email@example.com. We’ll get back to you with all the details of the documents required for the claim settlement. You’ll have to reply with the duly filled and signed claim form along with the required documents. We’ll get in touch with the insurer and help you with this. If there is any additional documentation required, we’ll also inform you about the same. SecureNow will help you end-to-end with your claim settlement process.
We have specialized underwriters and tie-ups with international experts.
We work with all insurers to get you the best options- both in terms of price and features.
Cover notes are issued within hours of request. This ensures that your goods don’t sit idle at any stage.
We manage all aspects of your claim - from survey appointment to documentation to insurer follow-up.
We will advice you on risk management best practices
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