What is Credit Insurance?
What does credit insurance cover?
A Credit Insurance Policy protects a business selling goods or services to another business on credit terms against unpaid invoices or the insolvency of a customer. More specifically, it insures the credit limits you give to your customers so that if your customer defaults on an outstanding payment you can claim to recover the loss.
How does it work?
1. UK Credit will undertake a full market review to make sure you have the most appropriate policy to cover either your whole ledger
or a selection of customers.
2. Insured credit limits are agreed with the underwriter on each customer to be insured and endorsed to the policy.
3. If a payment from a customer becomes overdue, the debt can be passed to the underwriter’s collection department or agency,
to try and recover the debt for you. If it can’t be recovered within a specified period of time, a claim should be made.
4. If a customer becomes insolvent, a claim should be made straightaway.
How much of the total debt will you get back?
The standard coverage offered by underwriters is 90%.
Can you cover customers outside of the UK?
The answer is yes. Policies can be set up to cover customers just in the UK, customers in the UK and overseas, or just overseas. For export customers, if the usual commercial underwriters can't write cover on a particular export credit limit there is help offered through Government sponsored schemes.
T: 0845 073 8630 E: firstname.lastname@example.org