Trade Credit Insurance

Protecting your key debts

Cover Built for the Way You Work

Trade Credit Insurance is the only way to truly protect your cash flow if you sustain a significant bad debt.

COVER FOR

Bad debt

What is Trade Credit Insurance?

Covered Parties: Customers, Builders, Developers and Principals

Unfortunately, bad debts continue to be a growing problem in the building and construction industry. Recent instances have again seen contractors ‘left in the lurch’ when an unexpected insolvency has occurred.

We have developed Trade Credit Insurance to address the needs of contractors in response to recent insolvency issues in the industry.

Our Trade Credit Insurance product is extremely flexible and will underwrite up to 90% of your deemed exposure. There are no restrictions on business turnover, and the credit limits will move as your business changes.

Whether you’ve experienced a significant bad debt in the past or you’re potentially exposed to substantial financial loss from one of your customers, builders, developers or principals, you can select a Trade Credit Insurance policy that is tailored to meet your specific needs.

When taking out a Trade Credit Policy, it enables your business to gain knowledge of prospective Clients through the resources of your insurer. It gives you credit-worthiness reports on prospective and existing Clients which may even allow you to increase your trading terms.

KEY BENEFITS

No restrictions on business turnover

Protects your accounts receivable

Potential to increase credit terms to your existing clients

Lowers risk of mounting debt from major clients

Why do you need this policy?

Here is an example

Richard, the CFO of an air-conditioning services company, wanted to protect their cash flow from the builders who used their services, so they took out Trade Credit Insurance.

Subsequently, one of his builders went into administration and left his company as an unsecured creditor, owing $345,000.

Richard claimed on their Trade Credit policy ensuring that their cashflow was protected and they did not have to borrow to keep the business going.