Credit Insurance protects the companies against customer defaults. It covers the sales of the companies to its buyers on credit against the risk of loss due to the insolvency of their customers.
Credit Insurance plays a vital role in the trade life -cycle of any company by protecting profit, cash flows, sales growth, the balance sheet and a company’s customer base. It can be of great help in growth of sales by allowing the secure development of new buyers, new markets and the credit extended to a buyer.
Whatever be the size of your company, Global Trade Credit provides innovative credit risk protection solutions to protect your business from unmanageable debt whilst maximizing profitability. We work on your behalf to make sure the most competitive terms are negotiated and secured in respect of cost, cover and service.
For companies with branches or subsidiaries in different regional locations or countries, there is an added risk of inconsistent credit management procedures leading to lack of awareness of your overall exposure to customer failures or politically unstable markets.
Credit insurance covers the risk of non-payment of trade debt. Protection for political and pre-credit risk can also be added, giving you the confidence to trade on credit terms in uncertain economic times.
Scope of cover
The policy covers loss due to any or all of the following risks:
  • Commercial Risk
    • Non payment by the buyer – protracted default
    • Insolvency of the buyer
  • Political Risk
    • Military or civil war, revolution, riot or insurrection
    • General moratorium on payment by the government of buyer’s country
    • Cancellation of import license
    • Government decision preventing performance
    • Political events, economic difficulties, legislative or administrative measures preventing payment
    • Non-payment by government buyer
Benefits:
  • Protects your profit & loss account and balance sheet against non-payment risk.
  • Underpins your credit management function and supports corporate governance best practices.
  • Gives security in new markets allowing exporters to grow their business.
  • Provides invaluable customer insight based on updated economic analysis from credit risk specialists.
Exclusions
  • Non-payment arising due to trade disputes
  • Sales to a private individual who intends to use the goods or service for non-professional purposes
  • Sales to an associate company (political and AOG risk can be covered)
  • Sales contracts where payment is received in advance
  • Sales under irrevocable and confirmed Letter of Credit
  • Loss due to foreign currency fluctuations
  • Nuclear risks
  • A war between two or more of the following countries: France, China, Russia, the United Kingdom and the United States of America
  • A war between the Insured’s country and the country of the buyer
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Copyright @ 2019 WMG Risk Advisory and Insurance Broking LLP.
IRDA Licence No. 603 | Licence Validity - 12/06/2017 to 11/06/2020