Trade Credit insurance

How does Trade Credit insurance work?

We will analyse your clients’ credit risks, and set a credit limit for each of them. You continue to trade with your clients as usual. If one of your clients defaults on a payment up to their agreed credit limit, you notify us. We will work with the insurer to organise a debt collection and get you your money back. 

If the debt collector can’t collect all of the payment that you were due, we can help you submit an insurance claim. In this instance, the insurer could pay up to 90% of the insured debt and the collection expenses.

Industries where credit insurance is important:

Why choose tailored Trade Credit insurance? 

Taking a tailored approach is more cost-effective compared to selection on a whole turnover basis, whereby the entirety of your sales is considered under the blanket of one monolithic policy with identical, often rigid, terms and conditions.

Every client, every deal is different. Sometimes subtly, sometimes dramatically. 

There are endless variables in contributing to a successful business. 

Engaging an experienced broker like Howden to negotiate on your behalf to get you the right cover for your specific needs. 

Expert knowledge to defend your interests

With so many variables, often you don't know what you don't know. 

For example, supplier disputes can be an exclusion on many policies. However, the precise definition of what counts as dispute varies from insurer to insurer. This is the sort of expert knowledge a talented broker brings – representing your interests the whole time.   

Bespoke service in Trade Credit insurance means having an experienced broker going through your client book and helping you work out where the real risks are.

Client relationships are different

Your clients will have different requests and terms. 

Your trade credit insurance should be set up to account for that. For example, you could have deductibles (excess) for some clients, but not others.

There’s more to it than just protracted defaults and insolvencies – having access to market insights before you complete deals can help you train your sales efforts on companies that have a good reputation for paying up.

Solid Trade Credit insurance is as much a growth strategy as a defensive measure

 

Trade credit insurance. The opportunity your business needs.

Trading on credit relies on trust, but what if a customer doesn’t pay? Relax. Our trade credit insurance helps cover the shortfall, reduce bad debts and power your growth (helping your finance team sleep tighter at night).

With Howden, you’ll receive proactive market intelligence, insights, and updates to help you choose customers and set terms, so you can trade confidently and free up cash reserves to grow your business. All delivered with transparent, personal service from our expert and dedicated team.

Protection for cashflow. Confidence to trade. Freedom to grow.

It’s more than insurance – it’s your opportunity to thrive.

Factors affecting Trade Credit insurance pricing

• Current credit management processes and losses
• Client base
• Contract frustration/repudiation
• Arbitration 
• Currency inconvertibility and non-transfer 
• Trade disruption 

Howden can help you assess your risks around each client and deliver a cost-effective package bespoke to your needs. 

While we strive to drive down premiums the emphasis is always on the quality of cover – there’s no point in buying a cheap cover only to realise you’re not covered when you come to claim, due to unforeseen policy exclusions.