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Customizing Your Trade Credit Insurance Policy

Trade credit insurance is an important risk management tool for businesses that sell goods or services on credit terms. This type of insurance can protect your company from non-payment by your customers, whether due to insolvency, protracted default, or other covered events.

While trade credit insurance provides valuable protection, it's important to understand that policies can be customized to meet the specific needs of your business. Here are some of the key ways you can tailor your trade credit insurance coverage:

Coverage Limits - One of the most important customization options is setting the coverage limits. You may be able to choose the maximum amount the insurer will pay out per customer, as well as the total aggregate limit across all customers. This allows you to manage your risk exposure and premium costs.

Covered Customers - You also may have control over which customers are included in the policy. You can choose to insure all of your credit customers, or you can be more selective and only insure higher-risk or larger accounts. This flexibility helps you target the coverage where it's needed most.

Covered Risks - Standard trade credit insurance policies protect against customer insolvency and protracted default. However, you may be able to add coverage for additional risks, such as political risks, customer bankruptcy, or customer refusal to pay. Expanding your covered risks can provide more comprehensive protection.

Policy Deductibles Similar to other types of insurance, trade credit policies often come with deductibles. You may be able to choose the deductible amount, with higher deductibles resulting in lower premiums. Selecting the right deductible level allows you to manage your costs while still maintaining adequate coverage.

By understanding the various customization options, you can design a trade credit insurance policy that aligns perfectly with your company's unique risk profile and credit management needs. This ensures you get the coverage you require at a cost that fits your budget.

Interested in this type of coverage? Call us at (207) 318-1111 or email us at for a free trade credit insurance consultation today.

Disclaimer: This blog is for general informational purposes only and should not be construed as professional advice or relied upon as a substitute for legal, financial, or other professional advice.

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