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.
Trade Credit Insurance
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Re: Trade Credit Insurance
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...
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...