Trade credit insurance protects businesses against financial losses when customers fail to pay invoices due to insolvency, protracted default, or political risks affecting overseas trade. It helps businesses protect cash flow and trade more confidently on credit terms.

Insurers assess the creditworthiness of your customers and set approved credit limits. If an insured customer fails to pay within the policy terms due to insolvency or default, the insurer can compensate a percentage of the outstanding debt.

Policies can cover customer insolvency, non-payment, protracted default, political risks on export contracts, and unpaid invoices arising from commercial trade transactions.

Trade credit insurance is commonly used by wholesalers, manufacturers, distributors, exporters, construction suppliers, and businesses offering credit terms to customers. Companies heavily dependent on a few key customers often benefit significantly from this protection.

Yes. Many policies can include export trade credit insurance covering overseas buyers against insolvency, political events, currency restrictions, or non-payment risks in international markets.

Premiums depend on turnover, debtor quality, sectors traded in, customer concentration, countries traded with, claims history, and average credit terms. Costs are usually calculated as a percentage of insured turnover.

Yes. Banks and lenders often view insured debtor books more favourably, meaning trade credit insurance can support invoice finance facilities, lending applications, and working capital arrangements.

Policies usually exclude disputes over product quality, contractual disagreements, fraud committed by the insured business, and sales made outside approved credit limits or policy terms.

You should notify your insurer immediately. After the required waiting period and policy conditions are satisfied, the insurer may compensate you for the insured percentage of the unpaid debt.

Yes. Many insurers offer trade credit insurance solutions for SMEs, including single-buyer policies, excess of loss structures, and tailored covers for businesses with smaller debtor books.