Frequently Asked Questions Ph 1300 665 240Some commonly asked questions about Trade Credit Insurance from Trade Credit Insurance Brokers: Do I have to insure all of my business's sales? Most clients choose to insure their whole ledger however you can select a different approach by varying deductible levels to suit your business needs and focus the insurance where you feel this is right for your specific situation and the composition of your debtors ledger. We have customers in Australia and overseas - can I cover both? All insurers offer cover for local and/or international sales. Depending on the relative size of the local and export sales you may choose to consolidate the insurance within a single policy or, more commonly, hold separate policies for each (export trade involves additional risks and often these are better catered for under a specifically designed export wording). Who sets credit limits and assesses the credit risk? The insurer will analyse the credit risk and review the credit limits required on your major customers whilst you will retain decision-making authority on the balance of the ledger, subject to agreed criteria set out in the policy wording. How much administration is involved? The policies are structured as far as possible to fit around existing credit management procedures and so in terms of additional workload there is in fact very little. How quickly will my claim be paid? Once the claim has been lodged, insurers are obliged to pay within 30 days of receiving independent third party verification of the amount of the debt from the Liquidator, Administrator etc. Can the policy be assigned to my bank? Yes. Claim payments can be directed to your bank/finance company if required. What do you do as brokers to assist us in finding the best solution for our business? Each case is different. We approach every new discussion with the goal of providing the best solution to a defined need. First and foremost we take time to understand what you do and how you do it. We look at any special features of your business operations to see how they can be best addressed within the scope of an insurance contract to make sure that the cover responds when and how you expect. We review the market, engage in discussions with those providers we believe are best suited to provide the right solution and then make a recommendation for the approach that best meets your objectives. How do you go about structuring a policy There are many ways to design and tailor a policy, refer FIGURE 1. We analyse your debtors ledger to see how the customer base is comprised review the size of your larger exposures, consider the insurers' capacity and appetite to write your risks, understand seasonal issues and peak trading patterns. We review your goals and motivations, credit management techniques and understand your budget. Taking all of this into consideration helps us to determine the best structure to suit your specific circumstances. What ongoing support and service do you provide? Our service offering provides all our clients with ongoing, hands-on support throughout the policy period. Each client has different requirements and so we tailor the support specifically to their needs and confirm the commitment we make in a Service Level Agreement, allowing us to be judged according to our actions and our words. We take this very seriously in a world where promises are easy to make and hard to keep. We assign an account broker to look after your day to day needs and one of IMC's Newbury's Partners will also be actively involved in overseeing the ongoing success of the relationship. We also provide a range of complementary services to assist in the management of your policy, designed specifically to assist in credit risk assessment, monitoring and policy compliance. |
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