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Trade Credit
Protect your business from debtor default.Looking for risk and insurance advice?
Does your insurance program best reflect the needs of your business? Our brokers can provide strategic guidance.
Learn moreWhat is trade credit insurance?
Trade credit insurance cover is a practical measure for protecting business liquidity in the event of non-payment of accounts receivable by a key customer.
Why do I need trade credit insurance?
Any company that sells goods or provides services on credit terms is at risk of non-payment due to the insolvency of a key customer (liquidation, receivership or bankruptcy), payment default or continued non-payment by customers.
With trade credit insurance you have the assurance of a guarantee on accounts receivable, freeing up your working capital to pay down debt, invest or as a basis for expanding your business.
Trade credit insurance also enables exporters to protect themselves against political risks including contract frustration, export restriction, currency inconvertibility and exportation.
The Gallagher trade credit insurance practice delivers tailored insurance solutions to protect your business by providing stability through assurance of payment and further opportunity for growth through expanding sales channels and volumes, making it a valuable strategic tool for increasing turnover and profitability.
How does trade credit insurance work?
Trade credit insurance protects manufacturers and service providers from the risk of non-payment, covering their losses if a debtor defaults on payment. Similarly buyers sometimes opt for a bankruptcy protection arrangement, which allows them to delay payments for an extended period.
Trade credit insurance policies are generally flexible and allow a policyholder to cover all or part of their portfolio by choosing from
- a business’s entire debtor ledger
- nominated debtors only
- domestic customers only
- overseas customers only
What are the benefits of trade credit insurance?
Trade credit insurance through Gallagher is:
- underwritten by Standard & Poor’s (S&P) A-rated insurance providers
- provides securities to stakeholders such as financial institutions and shareholders
- enables business growth
- flexibility of coverage
- protects profits
- regulatory compliance for some industries (eg: wine exports)
- competitive premiums
- tax deductible
Meet the team
Michael Woodward National Practice Leader, Trade Credit
Racheal Tumelty National Head of Credit, Surety ＆ Political RisksNews & Insights View all
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