Trade Credit Insurance

Every business can benefit from good credit management.  Trade credit insurance is one of the most important tools for that purpose.  If you’re selling on open account terms to other businesses then trade credit insurance could bring many benefits.  Even if you trade on other terms we have services that can support and strengthen your trading activity.

We’ve designed a range of trade credit offers for different types of business and transactions.  Every business can benefit from good credit management.  

Please get in touch with us to discuss what would be most suitable for you.

The premium is calculated for your business and the way you trade. This helps us make sure you receive the best match and service excellence for your business as well as an affordable premium.

If you haven’t used it before, here’s how to work out what it might cost for one of our more popular policy types.  The premium is based on a percentage of your sales, conservatively around 0.25% - often below, sometimes above.  Suppose your sales were $20 million last year and you want to cover that entire revenue.  Then the premium would usually be less than $50,000.  

Premiums can change depending on multiple variables.  Visit our Cost of Credit Insurance page to learn more.

Our insurance is designed for businesses with sales of at least $5million per year, but companies with sales of as little as $1million sometimes find our services to be a good fit, depending on the situation.  If your sales are lower than this, our insurance may not be the most suitable product for you.  We suggest you speak to your insurance broker or business bank manager who will be able to point to other ways you can protect your business. 

Many businesses trade with long standing customers that seem well funded. They believe payment can be relied on. However, even the strongest commercial concerns can be affected by the economic cycle and commercial trends. 

One Euler Hermes customer, EDPA, experienced this scenario when one of their oldest customers filed for bankruptcy and disputed EDPA's receivables. Read the EDPA case study for details.

"The Euler Hermes team made us feel so comfortable about the situation and confident that it would get resolved. When you are facing an enormous financial loss, having someone knowledgeable, supportive, and responsive in your corner can make all the difference. We are very, very happy with the service we received."
   – Alp Benadrete, Managing Partner in Charge of the Home Textile Division for EDPA

It takes considerable investment in data collection to keep track of customers’ financial health and to evaluate the risk of non-payment.   We make that investment so you don’t have to and we make the analysis available to you.  Insurance backed by insight allows you to trade with peace of mind through all phases of the cycle – today and tomorrow. 

Yes, we have experience in supporting longer term transactions (for example, multi-year contracts). Get in touch with us and let us know what you need. We’ll be pleased to make recommendations.

Yes.  Exporters concerned about political events can also benefit from coverage for non-payment as a direct result of events in the buyer’s country. Typical situations in which international credit insurance companies can help include war or cancellation of a contract by the local government. Another example is when a government imposes rules that stop goods from being exported or imported or when regulations prevent hard currency transfers.

There are many benefits to trade credit insurance.  If you have just started with trade credit insurance it can be useful to review your processes and procedures so that you gain the greatest value from your insurance policy.  We can advise you on best practices too.  Here are some examples of what you can do.