Credit protection insurance is a specific type of insurance cover which protects your company against ‘bad debts’.
This may be because a customer has become insolvent or simply that they are unable (or unwilling) to pay your invoices within a reasonable time frame (known as protracted default).
This type of insurance can involve an assessment being made of your customer (prior to your agreeing to provide goods and services to them) based on your customer’s financial performance and the way they conduct business.
Late payments can damage your cash flow.
This type of insurance offers clear benefits and peace of mind for all businesses in uncertain financial times.
It is particularly suitable for those companies which would be seriously compromised if their cash flow was suddenly reduced or slowed.
Generally speaking, a trade credit insurance policy will cover your company when your clients cannot settle their invoices.
The exact qualification criteria for a claim will vary.
Some policies will pay your company when the debtor formally enters administration, receivership, or makes an arrangement to pay creditors voluntarily.
However, we can also source trade credit insurance which will cover lengthy periods of non-payment by your client if you require extra peace of mind.
This type of trade credit insurance can be extremely beneficial for companies who work with high-value contracts.
It is also suitable for any companies who rely on substantial invoices being settled in a timely manner to keep their own business in a healthy financial position.
Contact aba Group one of the leading independent UK credit insurance companies on 01204 364 842 and speak with an experienced adviser for a tailored quotation or a FREE review of your existing policy.