Trade Credit insurance

Why does trade credit insurance make relationships better? Because there’s nothing more motivating in business relationships than knowing people will pay up when they should.  

Bespoke trade credit insurance can be the difference between a collaborative atmosphere and one of mistrust. Insurance can lead to increased confidence and new opportunities, especially in businesses that trade internationally. 

We also offer a range of speciality products, tailored for banks and commodity traders. 

What does trade credit insurance cover?

Trade credit insurance policies indemnify a seller of goods or services against their buyers’ failure to pay, either through insolvency or protracted default. Policies are designed on a sales turnover basis.   

Cover options include:

• Whole-turnover
• Selective accounts 
• Single contract 
• Domestic/ export 
• Political risk 
• Special risks

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. 
 

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