The Risk

In today's dynamic business environment, companies are under constant threat from the loss caused by the bankruptcy of a key customer. Even the best credit management cannot guarantee payment.

The Solution

Commercial credit insurance can be a valuable tool for managing your trade receivables. With the Credit Risk Insurance policy offered by Howden you can:

  • Protect your accounts receivable from loss due to insolvency or nonpayment
  • Reduce reserves by creating a safety net against bad debt write-offs that could impact bottom-line earnings and equity
  • Enhance receivables to create lending-insured collateral-an important feature for banks
  • Supplement your credit management with third-party evaluations of your customers' credit risk and market monitoring of the countries and industries where you trade

The Covers & Types of Policies

When investing in a credit insurance policy, there are a number of factors you must consider. The policies generally fall into two categories – Domestic Credit Insurance Policies & Export Credit Insurance Policies. Additionally, there are multi-market policies available for companies trading from just about anywhere to anywhere in the world.

Domestic Programs

Domestic policies can cover your entire receivables portfolio or just your largest customers. Typical users insure against catastrophic loss due to the insolvencies or protracted default of covered buyers. Coverage for insolvencies usually includes:

  • Bankruptcy
  • Nonpayment
  • Nonpayment
  • Bulk transfer of assets
  • Receivership
  • Unsatisfied judgments
  • Bank assignments
  • Liquidation

Comprehensive credit insurance programs are available which enable you to cover your entire accounts receivable portfolio and you may be granted discretionary authority.

Export Programs

In global trade, you face even more threats to your accounts receivable. Export credit insurance programs are often offered with political risk cover in addition to insolvency and protracted default protection. Political risk events typically covered are:

  • Contracted frustration
  • Embargo
  • Currency inconvertibility
  • Acts of war
  • Natural disasters

An export insurance program can also help you and your clients save valuable time and money by eliminating the need for letters of credit.

Customized Credit Insurance Policies

To meet the needs of today's business world, insurance companies have designed specialized credit insurance policies. These include:

Commercial - Designed for domestic only, export only or a combination of domestic and export, this policy covers loss associated with insolvency and protracted default