Trade Credit

Bespoke Trade Credit insurance can inject confidence and power new opportunities, especially in businesses that trade internationally

Solid trade credit insurance is as much a growth strategy as a defensive measure. We offer a wraparound service to help you expand safely, at a pace that suits you.   

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

Trade Credit insurance: a strategic approach 

There’s more to Trade credit insurance than just protracted defaults and insolvencies. Access to market insights can help you train your sales efforts on companies that have a good reputation for paying up. 

We have an in-house team of credit analysts who can help you gain that all important competitive advantage. Upon commencing your policy with us, you will have access to market and sector intelligence, insolvency statistics evaluation and customer financial analysis.

Tailoring for your client base
It’s normal that your will business offers clients different 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. 

Avoiding pitfalls
Supplier disputes can be an exclusion on many policies. However, the precise definition of what counts as dispute varies from insurer to insurer. We can help word policies to put you in the best possible position. 

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.