How Trade Credit Insurance Can Protect Your Business from Non-Payment Risk

In today’s trading environment, offering credit to customers is often essential to winning and retaining business. However, extending credit also exposes companies to one of the most significant commercial risks: non-payment. 
 
Trade Credit insurance is a powerful risk-management tool that protects businesses against losses arising from customer insolvency or prolonged payment default, helping to safeguard cash flow, balance sheets, and long-term growth.

Understanding Trade Credit Insurance

Trade Credit insurance, also known as debtor insurance or credit insurance, protects businesses when a customer fails to pay for goods or services supplied on credit terms.  

This protection typically covers: 

• Insolvency – where a customer becomes bankrupt, enters liquidation, or administration 
• Protracted default – where payment remains outstanding beyond an agreed period 

Policies are tailored to the insured’s credit sales, customer base, and trading profile, providing cover across domestic and export markets. 

Who Should Consider Trade Credit Insurance? 

Trade Credit Insurance is relevant for businesses of all sizes, but it is particularly valuable for companies that: 

• Trade on open credit terms 
• Have a small number of large customers 
• Operate in volatile or fast-changing markets 
• Export goods or services internationally 
• Are scaling rapidly or entering new territories 

Why arrange Trade Credit insurance through a broker, like Howden?

An experienced broker can play a vital role in ensuring the right protection is in place. This includes: 

1. Assessing your customer and sector risk profile 

2. Negotiating competitive terms and premiums 

3. Ensuring policy wording reflects your trading realities 

4. Supporting claims management and insurer engagement 

5. Providing ongoing advice as your business evolves 

Final Thoughts

In an uncertain economic climate, Credit insurance offers your business peace of mind, financial stability, and the confidence to grow. By protecting against customer non-payment, it transforms credit risk from a threat into a managed business decision. 
 
If your business relies on credit sales, Trade Credit insurance could be one of the most valuable protections you put in place. Trade Credit insurance: Protecting your business against non-payment risk. 
 
In today’s trading environment, offering credit to customers is often essential to winning and retaining business. However, extending credit also exposes companies to one of the most significant commercial risks: non-payment. 
 
Trade Credit insurance is a powerful risk-management tool that protects businesses against losses arising from customer insolvency or prolonged payment default, helping to safeguard cash flow, balance sheets, and long-term growth.