How to buy Credit Risk Insurance
Credit risk insurance is rapidly becoming a preferred financial tool for companies facing a wide range of problems and opportunities. In this article, we'll explore how credit risk insurance can be of value in your business and outline the best approach to shopping for this unique and highly valuable coverage.
This article is broken down into 6 key sections, with the intent of helping you understand the process of determining your credit risk insurance needs and then how to buy it.
Determine Why You Want to Buy Credit Risk Insurance - summary of benefits of credit risk insurance
Locate the Right Credit Risk Specialist to Assist You - why this is important, what to look for
Designing a Credit Insurance Program to Fit Your Needs - budget considerations, risk retention, establishing coverage limits
The Application Process - what to expect, turn around time, selecting carriers to solicit
Evaluating Credit Insurance Offers - apples and oranges, how your specialist can help, key points to compare for credit risk insurance
Implementing and Managing the Program - getting started, ongoing management items, how your credit risk specialist can assist
Implementing and Managing the Program
Once you feel you adequately understand what you are buying and have the policy fine tuned as much as possible to match your needs, you will simply need to issue the policy and pay the premium. It typically takes about two weeks for the policy to arrive.
On an ongoing basis, you can expect to have to maintain monthly past due reports in some policies. You will also want to monitor your account exposures in the event you need to add new accounts or increase the coverage limits on existing accounts. You will want to note key policy requirements like claim filing windows, and review the forms needed to request coverage, report past due accounts and file claims. Many carriers offer you the ability to manage these activities directly online, but your broker should also be available to assist where needed.
Credit insurance is a tremendous financial and risk management tool. With the right broker partner and carrier,
you can enjoy protection on one of your company's largest assets, safely expand your sales, improve your
borrowing arrangements and take advantage of expert decision support and credit guidance.
Going Further
If you recognize the benefits credit risk insurance may be able to provide for you, don't hesitate to contact us.
Use this convenient and confidential credit risk insurance application form to receive an evaluation at no charge.