What You Should Know In Getting Trade Credit Insurance
There are times when even after exerting protective measures from customers by conducting a credit check, the prospective customer would pass with flying colors, but would eventually encounter certain problems that are beyond the customer’s control which would result to their failure to pay. Losses from these transactions are unacceptable because it results not only in the loss of the profit but also, loss of a part of the company’s asset which is the amount of the goods or services which are not paid for. For these reasons, it is important to get trade credit insurance for your company.
However, upon deciding to get trade credit insurance, you should be aware of what to expect in the application process to facilitate the process. You need to know what information and documents you have to prepare beforehand to make the processing easier and faster.
Tips To Keep In Mind
- If you want to choose from different trade credit insurance providers, you can go for brokers who can provide you with different quotations from insurance companies with whom they have connections with. Your broker will even assist you in making follow ups for the release of the quotation.
- During your application, you will be provided with an application form which will necessitate pertinent information. Be sure to accomplish the form in order to get the best quote and policy that will fit your business.
- Be sure to understand the list of coverage that the credit insurance personnel will provide. If there is a some sort of coverage that you may need but is not included in their list, you may inquire for it and you will be informed as to its possibility or, they may give you other options in the absence for the requested coverage.
- The quotations that you will receive will probably have similarities but be sure to know the differences. This will tell which credit insurance policy has the best deal that your business can benefit from. You can ask your broker to help you determine their differences and what advantages one credit insurance company has over the other.
After having a full understanding of trade credit insurance and you are able to have a policy that is customized for your business, it is now time to accept the policy and pay for the premiums. Processing normally takes around two weeks for the documents regarding your final trade credit insurance policy to arrive
During the terms of your trade credit insurance policy, there may be times when you need to add customer accounts that you want to be insured or increase the limit of coverage on accounts that are already insured. While these activities and other activities related to your trade insurance policy can be managed online, it will be a great benefit to have a broker to assist you in dealing with your insurance policy provider. Trade credit insurance is indeed a great risk management tool and you can make the most out of it with the right broker and credit insurance provider.