Trade Credit

When a company sells goods or provides services on credit terms, the risk of not getting paid by its customers is a concern.

An effective trade credit insurance does more than simply protect businesses against these non-payments: it can help companies reduce the amount of money they need to set aside for bad debt, which is crucial for growing businesses and can also contribute to boosting sales by allowing businesses to offer competitive payment terms and/or expand into new markets.

Trade credit insurance

Chubb typically partners with companies who want an insurance product to complement their own credit management practices. 

We offer different product options

Multi buyer excess of loss

This product is designed to support companies with excellent credit management who want to protect their receivables portfolio in excess of an annual aggregate deductible. Such structures usually provide a high level of discretion; it means companies can trade in accordance with their own controls and procedures, secure in the knowledge that their credit insurance policy is there as a backstop. 

Policies can be managed centrally, regionally or country by country using 360, our online administration tool.  Chubb can accommodate global insurance programmes and we offer seamless local service in the major global financial centres.

Single transaction or specific account

Single transaction credit insurance is for companies who simply need to protect against non-payment by a single customer – typically their largest customer.

Named buyer portfolio 

It’s common for the bulk of a company’s turnover to be with just a handful of core customers. When that’s the case, Chubb can offer a named buyer portfolio policy that insures sales specific to those named buyers.

Top-up cover 

Companies sometimes have a trade credit insurance policy in place with another insurer that broadly meets their needs, but doesn’t fully cover all of their exposures. For peace of mind, Chubb has developed an innovative, additional policy to insure any shortfall in coverage. Companies usually prefer to manage this top up cover online, direct with Chubb.

Flexible coverage 

As well as offering non-cancellable credit limits, Chubb incorporates flexibility into its trade credit insurance policies, including:

  • High discretionary limit levels, in line with credit management capability;
  • Variable levels of deductible with risk share of up to 100%;
  • Group limits and worldwide coverage;
  • Bespoke wordings;
  • Multi-year policies.
Enduring expertise in trade credit risk

Our underwriters are supported by a highly experienced Credit & Country Risk Management team, whose analysts monitor companies and countries where credit risk is developing.

To support companies who have global insurance programmes, Chubb has centres of trade credit expertise around the world. This network also means that our trade credit risk professionals have up to date information on trading conditions everywhere that we can share with all our clients.

At Chubb, we also understand that all businesses are different with specific needs. Our underwriters work closely with our clients and are able to take fast decisions on different aspects of their cover.