Trade credit insurance solutions

Trade credit enables suppliers of goods or services to allow their buyers to delay payment until an agreed time, instead of paying as soon as the goods or services are received. This enables the buyer to manage their cash flow more freely and opens up sales opportunities for the supplier. 

However, this comes with a risk to the supplier, who may end up substantially out of pocket if their customers do not pay their invoices. 

Trade credit insurance is designed to protect a company against bad debts – situations where customers on a trade credit agreement don’t pay their invoices due to factors like liquidation, natural disasters or economic issues. 

Trade credit insurance for small and medium businesses has the added benefit of offering access to trade credit databases so you know who you’re entering into an agreement with and what the risks are.

Trade credit insurance for small and medium enterprises (SMEs) is suitable for B2B companies that operate on trade credit agreements. These companies may be selling goods or services in Australia or internationally.

Common examples of companies that may need trade credit insurance include:

• Construction
• Manufacturing
• Retail
• Wholesale and distribution
• Transportation and logistics
• Professional services

Trade credit insurance can benefit companies of many different sizes and sectors. It’s a dynamic product, and your insurance broker can help tailor your insurance to your needs.

• Limit of liability: This is the maximum amount an insured party may receive during the period of insurance, subject to any sub-limits, which may also apply. Policy options typically offer limits of liability ranging from $5 million to $20 million.
• Excess: This is the amount you will need to pay to make a claim on your insurance policy before the insurer then becomes liable.
• Inclusions: These are the situations or events covered by your insurance policy.
• Exclusions: These are the situations or events not covered by your insurance policy.

A certificate of currency is proof that you hold a current insurance policy.

Please contact us once you have accepted your policy and we will arrange for a certificate of currency to be sent to you from your insurer.

The insurance you will need or should consider for your business will depend on a few different factors – for example, the nature of your business, the services you provide, the assets you have, the risks associated with running your business, and the regulatory requirements of your industry or sector.

Some of the key risk insurance program options for businesses to consider include material loss or damage to property, glass breakage, theft, machinery breakdown, business interruption, electronic equipment, portable contents, tax audit, and money cover.

When it comes down to it, there’s no one-size-fits-all business package that suits all types of businesses – it’s all about finding the options that adequately cover the risks in your business. So before you sign for a business insurance policy, make sure you first seek advice from a broker who understands your business and its risks.

Yes. We can arrange monthly instalments* with a finance company, provided you meet certain criteria. 

To request monthly payments, please talk to one of our dedicated Marsh insurance brokers.

*Interest and additional fees may be applicable. Terms and conditions apply.