Your questions, answered.

Trade credit insurance protects your receivables against customer insolvency and non-payment, typically covering 75–95% of losses when policy terms are met. We structure coverage around your actual customer risk, secure credit limits with leading insurers, and help ensure compliance so claims are paid. Not all losses are covered, but when properly managed, credit insurance reduces bad debt risk, stabilizes cash flow, and supports safer growth.

  • Trade credit insurance protects your business if a customer fails to pay what they owe you due to insolvency (bankruptcy) or prolonged default (they simply don’t pay).

    Instead of absorbing the full loss, the insurer reimburses you for a large portion—typically 75% to 95% of the unpaid invoice.

  • Trade credit insurance typically covers:

    • Customer insolvency (bankruptcy, liquidation)

    • Protracted default (non-payment after a defined period)

    • Political risk (for exports), such as:

      • Currency transfer restrictions

      • War or government actions preventing payment

  • This is where most people misunderstand the product.

    Trade credit insurance generally does not cover:

    • Disputes over product/service quality

    • Late payments within normal terms

    • Unapproved customers or amounts exceeding limits

    • Self-inflicted risk (e.g., knowingly shipping to a failing customer against insurer advice)

  • The obvious answer is “to avoid bad debt,” but that’s not the real driver.

    The real value is balance sheet protection and growth enablement:

    • Protect margins – A single large default can wipe out months of profit.

    • Safely extend more credit – Sell more to customers with confidence.

    • Improve borrowing capacity – Banks lend more against insured receivables.

    • Stabilize cash flow – Reduce earnings volatility.

    • Gain customer intelligence – Insurers continuously monitor buyer risk.

  • No. That’s a common and dangerous misconception.

    You are still responsible for:

    • Setting payment terms

    • Monitoring accounts

    • Chasing collections

    • Reporting overdue accounts

    If you neglect these, claims can be denied.

    Think of insurance as a backstop, not a substitute for discipline.

  • Coverage is rarely 100%.

    Typical indemnity levels:

    • 75% to 95%

    You always retain some risk. That’s intentional—it keeps incentives aligned.

  • Yes.
    While many trade credit insurance policies cover a broader customer portfolio, single-buyer coverage is often available when a business wants protection on one especially important or concentrated customer.

    This can be useful when:

    • One customer represents a large share of receivables

    • A major sale or contract creates outsized exposure

    • A lender wants added protection around a key account

    Availability, pricing, and terms depend on the buyer’s credit profile, the size of the exposure, and insurer appetite.

  • Recoverability of receivables.

    With credit insurance:

    • Receivables become higher-quality collateral

    • Banks may:

      • Increase advance rates

      • Expand credit lines

      • Offer better terms

    In many cases, the financing benefit alone offsets the insurance cost.

  • Common users include:

    • Manufacturing

    • Wholesale/distribution

    • Staffing

    • Food & beverage

    • Construction supply chains

    • Exporters across all sectors

    • Tech

    • Metals

    • Chemicals

    • Oil & gas

    • Apparel

    • Consumer goods

    • Services

    • Transportation & logistics

    If you sell on open terms, you’re a candidate.

  • Expect to provide:

    • Accounts receivable aging

    • Customer list with exposures

    • Historical bad debt data

    • Financial statements

    • Credit procedures

    If your data is messy, the process slows down—and pricing worsens.