Credit insurance

Trade credits (buyers’ receivables) usually form a considerable part of the company’s assets, and like any valuable property should be insured. Even the reliable buyers may face hard times to pay their debts, which can end up in huge financial problems for the supplier.

Main credit insurance principles:

Credit insurance is firstly about the credit limit. The credit limit is the maximum coverage given to the particular buyer. The amount of the coverage is fixed by the Insurer. The insurance covers the receivables only of those buyers who have been approved with the credit limit.

The two parties of the insurance contract, i.e. the Insurer and the Insured both share the risk of the buyer’s insolvency. Usually the Insurer covers 75-90 percent of the loss. The credit insurance does not cover the companies associated with the Insured or the state institutions, or newly established companies operating less than one year.

For which business sectors does credit insurance apply?

Credit insurance may cover mainly all business sectors. However, it is not for the retail sales, where the buyers are private individuals.

If you are interested more in credit insurance, please contact us!