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.
Trade credit insurance is important for protecting your income and business assets against potential customer failure. With the right cover, you can grow your business confidently, knowing you can be protected if things go wrong.
Some trade credit insurance policies also offer the bonus of working with designated collection agencies to help you recover your debts, taking the pressure off this difficult and time-consuming process.
At DKG Insurance Brokers, we understand that the needs of each client are different, therefore we will take the time to assess your individual risk requirements and deliver a bespoke solution. Please reach out to one of our experienced brokers today.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about trade credit insurance, please consider the Product Disclosure Statement.
“The use of credit terms is so widespread that, if combined as a source of capital, it would create the 5th largest bank in Australia by assets.”
Depending on the policy, trade credit insurance can cover:
| Type of cover | Potential benefits |
|---|---|
| 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. |
| Key account | Covers key account for clients requiring protection on their largest buyers; optional non-cancellable credit limits and deductibles. |
| Single buyer | Covers single buyer coverage for quality credit risks. |
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:
- Failure to fulfil any terms and conditions of the contract or to comply with any provisions of the law.
- Failure to obtain any import or export license necessary for the performance of the contract.
- Any loss related to interest charges, penalties, legal costs, banking costs and currency exchange rate changes.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about trade credit insurance, please consider the Product Disclosure Statement.
“The use of credit terms is so widespread that, if combined as a source of capital, it would create the 5th largest bank in Australia by assets.”
“The use of credit terms is so widespread that, if combined as a source of capital, it would create the 5th largest bank in Australia by assets.”