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Trade Credit Insurance

The Insurance Every Plant & Equipment Needs to Know About

Brief Summary: Trade Credit Insurance protects businesses against the risk of non-payment by their customers, ensuring that the company's cash flow and balance sheet are safeguarded against defaults. This type of insurance is particularly valuable for companies that offer credit terms to their customers, as it ... mitigates the risk of financial loss from unpaid invoices due to insolvency, protracted default, or political risks in cross-border trade.

What is Typically Covered:

  • Commercial Risks: Protection against customer insolvency or prolonged default in payment.

  • Political Risks: Coverage for losses arising from political events that prevent payment, such as currency inconvertibility, ... government actions, or war in the buyer's country.

  • Product Risks: Coverage for the non-payment of goods and services delivered as per contract terms.

  • Buyer Insolvency: Compensation for losses if a buyer becomes insolvent and is unable to pay for goods or services provided.

What is Not Typically Covered:

  • Disputed Debts: Debts that are not paid due to disputes over the goods or services provided are typically not covered unless the dispute is resolved in favor of the insured.

  • Credit Sales to ... Associated Companies: Sales made to subsidiaries or associated companies are often excluded.

  • Pre-Delivery Risks: Risks associated with the period before goods are delivered to the buyer, such as pre-shipment risks, are usually not covered.

  • Known Risks: If the buyer was known to be in financial difficulty at the time the policy was taken out, any resulting losses may not be covered.

  • What is Business Insurance?
    Business insurance is a broad term for various policies designed to protect businesses from financial losses due to unforeseen events such as property damage, liability claims, employee-related risks, and more. It's a safeguard that helps ensure the continuity and stability of your business operations
  • Why Does My Business Need Insurance
    Insurance is essential for any business as it provides financial protection against common risks that could otherwise result in significant financial hardship or even the closure of your business. It covers everything from property damage and liability to employee dishonesty and electronic equipment breakdown.
  • How Much Does Business Insurance Cost?
    The cost of business insurance varies widely based on factors such as the size of your business, the industry you're in, the types of coverage you need, and your claims history. To get an accurate quote, it's best to speak with an insurance broker who can assess your specific needs.
  • How Do I know What type of Insurance My Business Needs?
    Determining the right type of insurance for your business depends on various factors, including the nature of your business, the risks associated with your industry, and your business's specific needs. An insurance broker can help you assess your risks and recommend the appropriate coverages.
  • Can I Customise My Business Insurance Package?
    Yes, business insurance packages are highly customizable. You can choose to include or exclude specific coverages based on your business's unique risks and requirements. An insurance broker can assist you in building a tailored insurance package that fits your business.
  • What Happens if I Don't Have Business Insurance?
    Operating without business insurance exposes you to significant risks. If an unforeseen event occurs, such as a lawsuit or property damage, you would have to pay out of pocket for any losses or damages. This could have a severe impact on your business's finances and could even lead to bankruptcy.
  • How Often Should I Review my Business Insurance?
    It's recommended to review your business insurance coverage at least annually or whenever there are significant changes to your business, such as expansion, offering new products or services, or purchasing new equipment. Regular reviews ensure that your coverage remains adequate as your business evolves.
Business Insurance Contact

If you would like more information on Professional Indemnity Insurance please fill out the below contact form or call Warren direct on 0422 131 401

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