Trade Credit Insurance Solutions | Hugh Wood Canada

Commercial Insurance

Trade Credit Insurance

Trade credit insurance is an invaluable tool that can ensure you receive payment for your products and services. When you buy from overseas vendors, the risk of non-payment is a common concern.

A trade credit policy can protect businesses from the risk of non-payment and ensure invoices will be paid promptly. It also allows your business to reliably manage the commercial and political risks of trade that are beyond their control.

With decades of experience in this field, we know how to tailor a policy with the right balance of price and coverage. Since we work with the leading insurers in this industry, we can provide you with a policy that fits your unique buyer portfolio.

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Benefits of trade credit insurance:

Trade Credit Insurance can improve financial planning by:

Strengthening your balance sheet to avoid unexpected losses

Securing your company’s cash flow by reducing bad debt

Forecasting bad debts more accurately through buyer monitoring

Safely expanding sales through credit extension and enhanced financing

Receiving access to actionable economic knowledge

We can provide coverage for the following risks:

Insolvency – Includes court protection such as Chapter 11 in the U.S. or Companies’ Creditors Arrangement Act in Canada

Protracted Default – Unpaid invoices 90 days past due date

Repudiation – Refusal to take up goods shipped and delivered as per contract

Political Risk – Inconvertibility / Contract frustrations as a result of government action / Public Buyer Defaults / Acts of War / Government regulation or restrictions

We offer the following insurance policies:

Multi-Buyer Policies / Named Customer Policies – whether the portfolio is for all of a company’s buyers or for a selection weighted towards a handful of large exposures

Cancellable / Non-cancellable limit-type products – whether the carrier can cancel coverage mid policy period if they receive adverse information about a buyer