What is trade credit insurance/accounts receivable insurance?

Credit insurance is protection from a buyer’s inability to pay for goods or services due to:

  • C.C.A.A. (bankruptcy in Canada)
  • Chapter 7/Chapter 11 (US bankruptcy)
  • Non-payment (past-due)
  • Refusal to accept goods

What are the benefits of having credit insurance, aside from accounts receivable protection?

The benefits of insuring your receivables will filter through your company. Credit insurance can give a company the confidence to expand with fewer risks, protect liquidity and cash flow, and influence lending agencies to provide added financing. Most importantly, it enables your business to expand both its sales and its profits.

Do I have to cover all of my accounts?

No. Credit insurance is flexible and can be customized to individual needs. A company can insure its export or domestic sales, or an exclusive segment of their receivable portfolio.

Will the policy be more expensive if I deal with a broker?

No. In all likelihood, your policy will be less expensive. There is no cost to the insured in making use of a broker’s service. The broker will have the expertise and tools to access the best rates and most fitting policy. Furthermore, most companies recover the cost of their policy through the savings generated from avoiding bad debt expenses.

Can I add accounts to be insured during the term of the policy?

Yes. Adding accounts to the policy is quite simple. You must provide the identifications details for the account along with the requested coverage, requested date of coverage, and current outstanding balance. If the request is accepted, the policy is amended accordingly.

As the largest broker specialized in credit insurance in Canada, we have access to over a dozen insurance companies and factors in Canada and the US, and over 400 clients, ranging from sales of less than one million to over two billion dollars. With decades of experience, our size, reputation, and expertise allow you access to better pricing, better policy conditions, and more flexibility. We are specialists in a highly specialized field, and our interest is in your specific needs.