Q WHAT IS BUSINESS CREDIT INSURANCE?
Credit insurance is a risk management product that protects your commercial accounts receivable from losses caused by slow pay, insolvency, bankruptcy, and political risk on export sales.
Q WHY United Risk Consultants?
We have the experience that is needed to deliver the right coverage at the most competitive price available in the market. After your policy has been issued, we will stay involved with excellent service and support to help you grow your business and to maximize your policy’s benefits.
Q HOW MUCH DOES CREDIT INSURANCE COST?
Credit insurance is reasonably priced. The premium is determined by several factors that include your loss experience, the number and size of the covered accounts, the credit risk of the accounts, country risk, and the desired deductible. Premium rates usually are in the range of .001% (10 basis points) to .004% (40 basis points) of covered annual sales volume.
Q IS THERE A DEDUCTIBLE?
Your policy can include a one-time annual aggregate deductible or co-insurance, or can include both. Zero deductible policies with coinsurance only are common in the market today. The level of risk that you choose to retain can be negotiated.
Q MAY WE INSURE ONE ACCOUNT OR MUST WE COVER ALL OF OUR RECEIVABLES?
A program can be custom designed to meet your exact coverage requirements – whether a single debtor request or an all-inclusive plan. Pricing is usually higher under a single debtor type policy, so he most cost effective method is to at least insure some of all of your largest accounts.
Q MAY WE ADD NEW BUYERS DURING THE POLICY TERM?
Yes. Coverage requests on new buyers are typically answered within two business days.
Q HOW DO I FILE A CLAIM?
Claims are filed on easy to understand notification of claim forms along with copies of the invoices and other relevant supporting documents that are the usual and customary documents used in a business transaction.
Q WHEN ARE CLAIMS PAID?
With most insurance companies, loss payments are made within 60 days after receipt of a timely request for a loss settlement.
Q WHAT IS NOT COVERED?
The policy does not guarantee the quality of your merchandise or service. A disputed invoice may be filed as a claim, but it must be found to be a legally sustainable debt for the amount to be covered under the terms of the policy.. Claims must be filed on time.
Q ARE EXPORT RECEIVABLES ALSO COVERED?
Yes, if you elect them to be. You can have the option to insure domestic only, export only, or both under the terms of one credit insurance policy. In the USA, sales made to Canada and Puerto Rico are typically considered to be domestic sales under most credit insurance policies. Coverage on export sales usually includes political risk. Political Risk is alive and well in the market today.