Trade Credit Insurance
Trade credit insurance (TCI) is a financial risk management tool that can safeguard your company against losses that come from non-payment of trade related debts.
TCI effectively ensures that your company is not adversely affected by the (unpredicted) failure of one or more of your customers. It is really a tool to help you manage your risks.
Why you should consider it.
Any business that deals with customers needs this coverage! It can help protect your business against the potential misfortunes of your customers. If you trade or sell goods on a credit basis, you’re at risk of bad debt or non-payment by customers. This can disrupt your cash flow and leave you out of pocket.
What can it cover?
Depending on the policy, trade credit insurance can be either:
- Comprehensive cover: Protecting your entire credit portfolio, including domestic and export customers
- Excess of loss: Suitable for businesses with strong internal credit management processes who want cover for exceptional loss across their entire portfolio
What isn’t covered?
As with any insurance there are limits and exclusions that apply. There may also be a deductible, excess or limits on this type of cover so check with your GIBA insurance broker.
Please talk to us about what may or may not be appropriate for your coverage.