Products & Services
Credit Insurance Structure & Features
In addition to domestic and export credit insurance programs, insurance companies structure policies differently.
A few of the different policy structures are:
- Named policy form / key accounts
This structure covers your largest accounts which are pre-approved by buyer underwriters. This type of policy can be tailored to fit any portfolio risk. - Whole turnover / all sales
This "ground up" credit insurance policy covers your entire customer base with larger accounts scheduled – or approved by buyer underwriters – and smaller accounts covered under a Discretionary Limit. - Retention
Policy pricing varies between policies, but you may be able to keep premium cost under control by sharing the risk. This is done by:- Coinsurance - the percentage of loss paid on each and every loss occurrence. Under this structure, the policy typically covers between 80% and 95% of the claim.
- Deductibles - the excess of loss deductible or annual aggregate deductible is set with bad debt loss experience.
- Additional features to consider when you purchase a policy are:
- Qualifying loss – the minimum loss paid by an underwriter.
- Credit insurance policy period – policies are typically offered on a renewal basis but may available between 12 and 24 months.
- Waiting period – insolvency and protracted default is usually not less than 90 days. Claims due to political events may have a curing period prior to settlement.
- Country limitations – sales to certain countries may be limited or subject to requirements.
Get additional information about policy structures and features by calling 877-442-7475 or online.
