What is credit insurance?
Put simply, credit insurance protects your business against the risk of bad debts. Trade debtors can represent up to 40% of a company’s assets and credit insurance is designed to protect this aspect.
If your company is affected by bad debt, the consequences can be very serious and can ruin an otherwise profitable business. Credit insurance – often referred to as trade credit insurance or trade debtor insurance –protects a company from the risk of non-payment after its goods or services are delivered to another business.
Most credit insurance policies don’t just provide bad debt insurance – they also give you access to financial information on your customers, allowing you to develop relationships with only the most successful and financially secure businesses.
Protect your business with credit insurance from CiSL
The credit insurance brokers at Commercial Insurance Services can find you some of the best business credit insurance products available in the UK.
Different types of credit insurance policies are available as follows:
- domestic whole turnover credit insurance –designed to protect your business turnover against insolvency and default by customers in the UK
- export credit insurance – to protect your export turnover
- catastrophe cover – sometimes called ‘excess of loss’ cover or ‘stop loss cover’ – is suitable for companies with a significant turnover
Bad debt protection insurance policies can also be tailored to cover a single customer or a selection of key customers on whom the business depends most.
The benefits of credit insurance cover arranged by CiSL include:
- provides a safety net against the non-payment of a trade debt, be it insolvency or protracted failure to pay
- allows the insured to trade confidently with both existing and new customers, and to have the ability to penetrate new markets with confidence
- prompt replacement of working capital
- monitors the financial health of your key customers on a regular basis
- known bad debt reserve
- assistance in the collection of overdue accounts
- banks and trade financiers recognise credit insurance as a plus point, possibly having a more favourable reflection on lending terms
- peace of mind
Complete our online credit insurance quote form and we’ll search the market for policies from the leading UK credit insurance companies to find what you’re looking for.
If you prefer to discuss your company credit insurance needs direct from one of our friendly and knowledgeable independent insurance brokers, please call CiSL on 01737 373222, or you can email email@example.com.