DIFFERENT TYPES OF TRADE CREDIT INSURANCE
There are a number of different types of Trade Credit insurance:
- “Whole account” or “Whole Turnover”: this type of policy covers all your invoices from all your customers
- Critical or key customer cover: this covers a business for only certain specified named customers such as a key account whose default could financially threaten the business
- Single invoice, single contract: this covers single invoices against a single customer
Export trade credit insurance: this covers non-payment by overseas customers and can be extended to insure the business against political risk where the government causes the payment failure (such as import/export restrictions or foreign currency restrictions), government interventions and dis-honoured letters of credit.