What is trade credit insurance?

Trade credit insurance is a risk management product that helps businesses protect their accounts receivables against the risk of non-payment, as a result of insolvency or protracted default of their customers.

Why do I need trade credit insurance?

Given that the majority of B2B trade is completed on credit terms and that the resulting receivables form a large part of your balance sheet, it is prudent risk management to insure what is an important part of your business. As made evident by the GFC, both large and small debtors can fail, along with those companies that might well have been household names.

What is covered under the policy?

The non-payment of your sales and services provided on credit to your customers.

Is the policy easy to manage?

Yes, your existing credit management practices should match the requirements of the policy.

Do I need a broker?

Yes, you will need to deal with a licenced broker in order to obtain a policy with TCUA.

Can I insure my domestic and export trade?

Yes, both domestic and export transactions can be covered. Domestic transactions are covered for insolvency and protracted default, while export transactions are covered for insolvency risk only.

How much does it cost?

Each policy is based on a premium rate assigned to your annual estimated insurable turnover. The price of the policy is influenced by a number of factors, such as:

• The industry and markets that you operate within
• Your insurable turnover
• The size and number of the credit limits required
• Your bad debt history and health of your ADTB

Can you help me collect my debt?

Yes, TCUA is partnered with a commercial collections business who will be able to assist in the collection of your debt.

When will my claim be paid?

Claims are payable 30 days from our receipt of the Confirmation of Debt from the insolvency practitioner in charge of the insolvent debtor. For protracted default, a claim can be payable as little as 60 days from the original due date of the invoice.