specialist areas

Trade Credit Insurance

Safeguarding your transactions

Credit terms are beneficial to facilitate trade, but it comes with a risk – late or non-payment from a customer can have serious knock-on effects.

Trade Credit Insurance gives your business cover if a customer fails to pay what they owe, helping to protect your cash flow, support your growth and safeguard your bottom line.

We can organise Trade Credit insurance for you, protecting your business, whether that’s covering you in the UK or for export transactions across the world. You’ll deal directly with our experts who will help you to find the most appropriate cover and fully support you, should you need to make a claim. 

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types of trade credit insurance

Your business is unique, and so is your policy. Whether you’re a small UK startup, an established SME, or a multinational corporation, we provide bespoke trade credit insurance solutions that best meet your requirements.

No matter what sector you operate in, we provide the security you need to trade with confidence. We discuss your business’s unique needs, assess the areas of concern, and propose the best solutions to minimise these risks.

Trade Credit insurance is specific to each client, so we work closely with you and your team to understand your business and ensure we structure a policy to suit your requirements.

Policy types include:

Single Debtor Insurance

Also known as single buyer, single risk or single customer insurance. This policy covers your business against bad debts from one single debtor up to a specified credit limit.

The insurance can be comprehensive, covering insolvency and protracted default or insolvency only. Underwriting criteria is more restrictive than whole turnover insurance policies.

Whole Turnover Insurance

Comprehensive trade credit insurance cover for a business’ entire ledger. The insurance covers against buyer insolvency and protracted default/non-payment for domestic and export buyers. Policy structures are usually “ground up” with a relatively small excess. Commercial indemnity is usually up to 90% of the credit limit.

Named Buyer Insurance

Also known as named customer insurance, key account insurance or selective policies. This policy provides cover for two or more specific debtors/buyers/customers on a comprehensive basis, i.e. for insolvency and protracted default.

Policy structure is bespoke depending on your requirements, you may wish to select specific buyers to insure, just your largest customers or customers with exposures above a certain threshold.

Export Insurance

This policy offers comprehensive protection for UK-based businesses trading overseas, including the option to insure against political risks. You can choose to cover all your export activity or trade with specific countries. Insurers will assess the associated risks based on the countries involved, among other factors.

Excess of Loss Policies

Policies designed for larger companies with significant turnover on a comprehensive basis where the business can accept a higher level of self-insurance. The internal credit control procedures within the business will need to be established/sophisticated.

These credit control procedures protect your business from smaller expected losses and the insurance policy covers your business for those extraordinary, potentially catastrophic losses. In exchange for a higher risk share, the premium rates are more competitive and cover on customers/buyers/debtors is often written on a non-cancellable basis.

Non-Cancellable Policies

Policy which provides non-cancellable credit limits on customers/debtors/buyers for duration of the policy period. Range of structures available including ground up, excess of loss, single debtor or named buyer.

Top-Up Insurance

Additional layer of cover to top-up a credit limit offered by another credit insurer.

Multinational Trade Cover Insurance

Trade credit insurance for multinational companies operating across two or more countries. Generally targeted at global businesses with a large turnover. Bespoke risk solutions for global businesses with support at a global and local level.

SME Policies

Trade credit insurance policies targeted at SMEs. Policies provide set policy structures at set prices with small excesses, typically £500 to £1,000. If you meet the criteria then a price can usually be offered instantly.

Financial Institutions

Insurers have a range of trade credit insurance products that are developed specifically for financial institutions. The policies offer cover for a variety of funding arrangements where there is associated trade transaction.

Credit insurance is tailored to your specific needs, so we can maximise your plans to expand and grow, domestically and internationally.

Deep experience you can rely on

From manufacturing and construction to technology and recruitment, we have broad sector experience in organising Trade Credit insurance, Bonds and Sureties in the UK and overseas.

We’ll manage and change as your business evolves – from first contact to after the policy is in place, we’re in your corner, arranging the best trade credit insurance solution possible for you.

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frequently asked questions

What is Trade Credit Insurance?

Trade Credit Insurance protects your business against the risk of bad debt from non-payment or insolvency. Whether you sell goods or services, this type of cover gives you the confidence to offer credit terms to your customers, knowing you’ll still get paid even if something goes wrong.

From UK SMEs to large multinationals, we work with a wide range of businesses to arrange policies that suit your size, sector and trading relationships.

What is Bad Debt Protection?

Trade credit insurance is also commonly known as bad debt protection. When one of your debtors goes insolvent, or into “protracted default” (where they are solvent but are still unable to pay one of your invoices for an extended period of time), having bad debt protection allows you to be compensated.

This insurance mitigates the threat that unpaid invoices can pose to your cash flow, your growth, and even to your company itself. You can feel confident that late payment or non-payment from one of your customers is not going to negatively affect your cash flow.

What types of businesses need Trade Credit Insurance?

Any business that offers goods or services on credit terms can benefit. It’s particularly valuable for companies with a few key customers, or those trading internationally.

How can Trade Credit Insurance benefit my business?

Improves Cash Flow – Protect your business against fluctuations in cash flow caused by bad debts and unpaid invoices.

Facilitates Growth – Trade confidently with new customers and increase trade with existing customers.

Enhances Profitability – Increase exposure to customers safe in the knowledge that this risk is protected.

Delivers Vital Insight – Avoid bad debts with in-depth information on your customers and markets to support your credit management and enable the business to make informed decisions.

Creates a Competitive Advantage – Trade at higher volumes on open credit terms compared to your competitors.

Provides Funding – Access finance and funding opportunities.

Need commercial insurance?

We provide commercial insurance to businesses of every size, taking time to ensure you’re compliant and protected.

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need a different solution?

No problem. We support businesses of all sizes, from global enterprises with complex insurance needs to agile start-ups focused on growth. Whatever your business, we're here to help.

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