Types of Credit Insurance Policies
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Although
there are a wide variety of credit insurance policies, they
generally fall into two categories:
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Additionally,
there are multi-market policies available for companies trading
from just about anywhere to anywhere in the world.
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Domestic
Programs
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| Domestic
policies can cover your entire receivables portfolio or
just your largest customers. Typical users insure against
catastrophic loss due to the insolvencies or protracted
default of covered buyers. Coverage for insolvencies usually
include: |
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Bankruptcy
(chapter 7 and chapter 11) |
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Nonpayment |
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Bulk
transfer of assets |
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Receivership |
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Unsatisfied
judgments |
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Bank
assignments |
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Liquidation |
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Comprehensive
credit insurance programs are available which enable you to cover
your entire accounts receivable portfolio and you may be granted
discretionary authority.
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Export
Programs
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| In
global trade, you face even more threats to your accounts
receivable. Export credit insurance programs are often
offered with political risk cover in addition to insolvency
and protracted default protection. Political risk events
typically covered are: |
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Contracted
frustration |
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Embargo |
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Currency inconvertibility |
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Acts
of war |
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Natural
disasters |
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An
export insurance program can also help you and your clients save
valuable time and money by eliminating the need for letters of credit.
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Customized
credit insurance policies
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To
meet the needs of today's business world, insurance
companies have designed specialized credit insurance
policies. These include:
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Commercial - Designed for domestic only, export only or a combination
of domestic and export, this policy covers loss
associated with insolvency and protracted default |
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International - Created primarily to cover exports (although it
can include domestic accounts as well), this policy
covers loss due to insolvency, protracted default
and political risk. |
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Multinational - This global credit insurance
policy is tailored to cover subsidiaries around
the world with a policy that matches terms and conditions
at any location. Language and currency options are
also available. |
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For
additional information about insurance program options, contact
us at 1-877-442-7475 or click
here.
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more about credit insurance. Go to: |
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