Trade credit insurance is a type of insurance that helps mitigate the risk involved in trade transactions. Trade credit insurance brokers are professionals who work to help individuals find the right trade credit policy for their needs. These brokers can be found online, or they may work directly with your company’s insurer.
This article will discuss what trade credit insurance is, how it works, and what you should know about insurance brokers before choosing one for yourself!
What Is Trade Credit Insurance?
Trade credit insurance is an insurance policy taken out by a business to protect themselves from trade risks. It is designed to cover the costs and losses incurred when goods are not paid for or services rendered as promised (or at all). Trade credit policies can vary depending on what type of risk your company has, but they typically include coverage for:
- Buyer’s failure to pay on trade receivables
- Seller’s failure to deliver on trade payables
How Does It Work?
A trade credit broker can help you determine specifically what type of trade credit insurance is right for you. Once they understand your company’s needs, the broker will be able to find and compare quotes from a variety of trade credit insurers that might be available in your area.
The Benefits Of Trade Credit Insurance
Some benefits to trade credit insurance include: protecting against market fluctuations on debts owed, allowing businesses to trade and build relationships with those who trade often, as well as providing an additional form of protection to the buyer.
Find out more from a professional trade credit insurance broker at Trade Risk Group.