Business credit insurance is a financial tool that reduces the risk of an unexpected credit loss.  It is an insurance policy custom tailored by a financial professional to meet individual client situations.  The policy typically runs for 12 months, and covers losses on goods and services shipped during the policy period.  

 HOW MUCH DOES IT COST?

The cost of credit insurance varies based on a number of factors including:  The client's historical loss experience, the risk in the portfolio, the spread of risk being provided, seasonality in the portfolio and risk retention on the client's part.  As a "ballpark" estimate, the typical annual premium runs approximately .5% to 2% of the total coverage requested, or 1/10th% of covered annual sales.

 IS THERE A DEDUCTIBLE?

The typical policy is structured with a one-time annual aggregate deductible.  To further reduce cost, we can utilize coinsurance set at your average gross margin (cover hard costs in a loss - not profit).  Zero Deductible policies with coinsurance only are also available.  The type of risk retention used and the actual dollar amount or percentage varies widely from client to client.  It is based on historical loss experience, portfolio structure and appetite for risk retention.  

 CAN WE INSURE ONE ACCOUNT OR DO WE COVER OUR ENTIRE CUSTOMER PORTFOLIO?

We can custom design a program to meet your exact coverage requirements - whether a single debtor request or a comprehensive structure.  As you may suspect, pricing is higher under a single debtor type policy and coverage approval is based solely on the merits of the one account to be covered - unlike a comprehensive structure that offers underwriting a better spread of risk.

 WHAT DOES THE POLICY COVER?

The policy provides coverage on a very broad definition of insolvency, as well as past due accounts, in most cases.  

 CAN WE ADD ACCOUNTS DURING THE POLICY TERM?

Yes.  You simply provide the account name, address, and phone number for the account you want considered for coverage with the respective amount.  We also need to know the desired effective date and current outstanding balance.  Coverage requests are typically answered within two business days.

 HOW ARE CLAIMS FILED?

Claims are filed on a simple one page notification of claim form.  Copies of invoices and other relevant documents should be attached to the form.  

 WHEN ARE CLAIMS PAID?

Typically, within 60 days of your request for a settlement.  

 WHAT IS NOT COVERED?

Disputed invoices.  A disputed invoice must be found to be a legally sustainable debt for the amount to be covered under the terms of the policy.  Any undisputed portions of the invoice can be allocated in most claim settlements.  

 ARE EXPORT RECEIVABLES ALSO COVERED?

Yes, if you elect them to be.  We have the option to insure domestic only, export only, or both under the terms of one credit insurance policy.  Canada and Puerto Rico are typically considered domestic under most credit insurance policies.  

 HOW LONG HAS CREDIT INSURANCE BEEN IN EXISTENCE, AND WHY HAVE WE NOT HEARD OF IT BEFORE?

Credit insurance has been around since the late 1800's.  It was widely used in certain industries like textiles and apparel manufacturing.  As a niche product, it was not widely used or promoted until recent decades.  In fact, a great majority of the products growth has occurred in the past several years.  

 WHY GLOBAL COMMERCIAL CREDIT?

As the nation's fastest growing agency, we bring the entire credit insurance industry to you.  We take the time to learn your goals and objectives so we can custom develop the most effective option available in the market - based on cost, coverage, and administrative requirements.  Global Commercial Credit is committed to helping protect your bottom line!

 HOW DO WE GET STARTED?