Domestic Credit Insurance, Export Credit Insurance, Specific & Key Account Credit Insurance, Catastrophe Credit Insurance, Global Credit Insurance

Domestic Credit Insurance or Whole Turnover Domestic Credit Insurance - For sales within a business’ local market, domestic credit insurance covers against bad debt losses caused by insolvency and/or protracted default for a single buyer or entire portfolio of receivables (whole turnover). Policies are usually structured with a first loss of £500-£1,000 and many underwriters are now offering fixed premiums inclusive of credit limit charges as well as an integral collections facility.

 

Export Credit Insurance or Whole Turnover Export Credit Insurance - For international sales, insurance covers various risks including insolvency, protracted default and political events in the foreign country.  Coverage is available for a single overseas buyer or for an entire portfolio of foreign receivables (whole turnover).

 

Combined Domestic & Export Credit Insurance – For businesses trading in the home market as well as exporting abroad. The breadth of cover is similar to the Whole Turnover Domestic Credit Insurance Policy, but designed to cover a combination of domestic and export receivables.

 

Pre-Delivery Coverage – Cover designed for situations where goods are made to order. This type of policy protects against the insolvency of the buyer and/or political default or political frustration. May be offered as an independent policy or may be attached to a domestic or export credit insurance policy.

Specific Account Credit Insurance is a policy designed to cover receivables for a single customer – often the largest account the business has. Cover is often provided for insolvency only and an “indemnity” can be specified on the credit limit granted - typically 80-90%.

 

Key Account Credit Insurance - This type of Credit Insurance policy offers businesses insolvency and protracted default protection, but only covers a selection of between 2 and 20 of their largest customers. Key Account policies will usually carry an excess.

 

Catastrophe Credit Insurance is designed to protect companies with annual turnover in excess of £10 million and with established and effective credit control procedures in place. Under such policies, the insurer “underwrites” these credit control procedures and sets an Annual Aggregate Deductible, in excess of which, claims are payable. The deductible is usually set at a level of at least £25,000 and more commonly at £50,000-£100,000.

 

Global Credit Insurance is designed for multinational companies with trading centres in several countries. A single credit insurance policy is designed to cost-effectively cover all the divisions or branches of the business on either a Whole Turnover or Catastrophe basis depending on the individual requirements. Such policies allow businesses to ease the burden of high-risk industry sectors or trading regions by incorporating cover with better established or ‘safer’ regions.

 

To request an indicative quotation or more information please complete the outline credit insurance quote request form.