Our Credit Insurance covers you against bad debt, late payments, political risk, pre-shipment risks and more. Protection for your cash flow and future revenue will ensure that if the worst happens, you still get paid.
Credit insurance is a type of business insurance which covers losses arising from non-payment for goods or services. It means that should the worst happen - a customer’s insolvency or protracted default - the policyholder can protect their bottom line and maintain their cashflow.
There are credit insurance policies to suit all budgets. Premiums are generally set according to turnover and business profile – including industry sector, number of customers and previous loss history. After an assessment, the credit insurer will provide a quote that sets out price and policy terms, including amount of cover, level of self-retention (typically 10%), and whether there’s a deductible or minimum threshold for claims.
In principle, credit insurance is suitable for any company that provides credit to another company. Whether you trade in goods or services and in whatever sector you work in, Ace Insurance credit insurance policies are taken out specifically for your situation. Ace Insurance not only offers credit insurance for the United Kingdom and Ireland, but also companies that operate internationally can take out credit insurance with Ace Insurance. This means you have fewer barriers to growing your business internationally.
While credit insurance can fit comfortably within any credit management strategy, it compares favourably with alternatives on grounds of:
With most types of business insurance, such as employers’ liability or buildings insurance policies, the provider has little contact with their policyholder between renewal times, unless they receive a claim.
By contrast, the best credit insurers actively support a company’s trading throughout the year and provide an early warning system about changes in the risk status of customers so it can avoid foreseeable losses.
To be effective, credit insurance should be a partnership between both parties. The policyholder tells the insurer about customers’ payment behaviour and notifies overdue payments. The insurer feeds this customer information into its database alongside data from other sources, such as financial statements and public records.
Meanwhile, the insurer gives the policyholder access to its wealth of business intelligence and expertise in credit risk. Working together, they can determine the level of credit risk, adjust the level of cover and agree credit limits,assess the financial health of customers and focus on the most profitable.