What is Credit Insurance?
Quite simply, credit insurance speedily replaces cash lost as a result of a bad-debt. The insurance available is extremely varied but essentially is designed to cover you against the insolvency or default of domestic and/or export customers. Optional ‘political’ risk cover is available for exporters selling into politically sensitive markets. Examples of the most commonly available policies:

Whole Turnover Insurance
The original and most common form of credit insurance. Whole Turnover policies are designed to cover the whole of your debtor book, normally incorporating only a low excess to exclude smaller predictable losses. 85-90% indemnity is normally available.

Specific Account Insurance
These policies provide you with cover against the failure of a single customer.

Excess of Loss/Catastrophe Insurance
Designed for medium to larger organisations who can afford to sustain a reasonable level of bad debts, with cover only becoming effective once a pre-agreed aggregate of bad debts has accrued.

Principle Customer Insurance
Restricts cover to a company’s major customers only. However, up to 40 customers can be insured under these policies with 90%-100% indemnity generally available.

Credit Guarantees
A Guarantee offered to your suppliers protecting them against insolvency of your own company can assist in increasing your credit line with existing suppliers or establishing credit with new suppliers.