Trade credit insurance primarily protects businesses from the risk of their customers not paying invoices and the cover reduces the risk of a bad debt destabilising a business. It can enable businesses of all sizes across a wide range of sectors to grow their businesses, capitalise on trade opportunities and protect their bottom line.
BIBA Technical Services Manager, Shaune Worrall said: “This type of insurance is invaluable to businesses, but many may not be fully aware of it. This guide explains how trade credit insurance works and the additional benefits it provides. We worked with our member CMR Insurance Services ( part of PIB Group Limited) to create this guide and their expertise allowed us to highlight all of the benefits of this cover while simultaneously helping brokers to learn more about a class of insurance they may not have advised on previously.”
Stephen Uwins, CMR Insurance Services Schemes Director added: “We were delighted to work on this guide with BIBA. Trade credit insurance protects a business by covering the risk of their customers not paying invoices through insolvency or buyer default. However, some may be unaware that it is also a tool to support a business’ credit control procedures, improve cash-flow and ultimately aid business growth. Broadening the understanding of this class of insurance will bring immense benefits to business.
The guide is easy to read and includes real-life examples of how trade credit insurance works. It is available on the BIBA website to brokers and businesses.