| HOW
TO BUY CREDIT INSURANCE - (Continued - 2 of 4) |
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Locating
the Right Credit Insurance Specialist to Assist You
Credit
insurance can be an extremely valuable tool for your
company, and one that more than pays for itself in any number
of ways as previously noted. However, as a custom tailored
program, there is no standard "off the shelf" policy you can
buy that will automatically be the right fit for your specific
needs and circumstances. Further complicating the matter is
the fact that there are only a few providers specializing
in this type of coverage, and they each have their own risk
appetites, underwriting philosophies and contract wording.
Ideally,
you will seek the assistance of a credit insurance specialist.
When looking for someone to help you shop for this type of
coverage, you want to be sure that you are dealing with a
specialist who meets the following minimum qualifications:
-Has
as their primary if not exclusive focus, the implementation
and management of credit insurance.
-Is
licensed to do business in your state and is in good standing
with state regulators.
-Has
appointments to represent and is in good standing with all
of the providers in the market, and preferably has what is
known in the industry as "direct writing" authority. That
is, they work directly with the carrier's underwriters vs.
having to go through other representatives of the carrier.
-Has
established staff, resources and procedures to support both
shopping for the policy and assisting with ongoing policy
management.
Tell me more about Global Commercial Credit Insurance .
Specialist brokers who deal exclusively with
credit insurance are more likely to have a deeper understanding
of each carrier's philosophy, risk appetite and contracts.
They will be able to lead you to the ideal solution in the
least amount of time, and ideally save you unnecessary paperwork
and money. Most brokers do not charge any additional fees,
and under insurance industry regulations, the premiums quoted
through your credit insurance broker are priced the same as
if you were to secure them directly from the carrier.
While some of the carriers do have their
own agent networks, dealing with a competent specialist broker
opens you up to more market options, and objective expertise
and decision support. Your broker's loyalty is to you and
to helping you maximize the value of your investment in credit
insurance.
It is
important to note here that in the US marketplace, there are
less than 10 traditional credit risk insurance markets to
go to, and several would be considered more specialized vs.
mainstream underwriters. In light of this, you will want to
select one broker partner to work with. If you solicit more
than one broker, you will find they end up going to the same
carriers. One competent broker can effectively cover all of
the market options for you, and you will avoid a lot of unnecessary
confusion and complications that would arise if you try to
put more than one broker to work on your behalf.
When
talking with a credit insurance broker, you should expect to find
someone who is interested in understanding your perceived
needs and uses for credit risk insurance, and who is interested
in learning about your company and the direction management
wants to take the business. The best specialist brokers are
the ones who do the most listening and ask a lot of questions.
Since every policy is custom tailored for each client's needs,
the more your broker knows, the better the job they can do
for you.
Your
specialist broker can provide you with detailed information
on credit insurance, including the various carriers' financial
standings and ratings, specimen policies and help you with
comparative analysis of the options available to your business.
In terms of ongoing support, your broker should also be able
to assist with account research, coverage requests, claims
filings, helping you understand the minimal reporting requirements
some carriers have, negotiating renewals and shopping for
account coverages you may need outside your primary policy.
In short, your specialist broker is your outside expert and
partner.
Next,
you'll want to know about:
Designing
a Credit Insurance Program to Fit Your Needs
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