Trade Credit Insurance

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Trade Credit Insurance

Post by cameronspearman » Tue Apr 25, 2017 9:57 am

Has anyone placed coverage for this type of insurance? It is like accounts receivable, which can be endorsed on most property policies, but different. It covers defaults by customers who fail to pay money they owe due to bankruptcy, cash flow problems, an ownership change or some other reason.

If so, can it be endorsed? Is it a standalone? what are rates like if so? Exclusions?.....any info would be appreciated.

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Re: Trade Credit Insurance

Post by creditpro » Tue May 02, 2017 1:01 pm

Trade credit is a line of coverage best handled by specialists in the field. I recently worked as an expert witness in litigation where a general P&C person tried to offer credit insurance and botched it. Resulted in a nasty E&O claim.

There is very little, if any, overlap with P&C. We typically work with CFO's or credit managers, not risk managers. Our concern is the creditworthiness of a policyholder's customers, so we look at financial statements, receivables aging, and country risk.

Some insurers have their own sales staff; others work exclusively through specialty brokers, of which there are only a few dozen nationwide. We all have clients across the country, and most of us would gladly work with a lead from a P&C person. Be aware that commissions from all but the largest accounts are hardly worth sharing...

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Trade Credit Insurance

Post by Stattipsy » Tue May 30, 2017 10:47 am

In Mass, it only applies if you trade at a dealer for the new to you car. If you sell a car separately,no credit. Non dealer trade, no credit.

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Trade Credit Insurance

Post by handsuggign » Thu Oct 26, 2017 11:40 pm

You only get a tax credit on what you use from the trade towards the new vehicle. You would not get a tax credit on the money you would want as a check back from the dealer

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