Individual Buyer Insurance
Individual Buyer Insurance, also known as ‘specific buyer’, ‘single-risk cover’ or ‘single-buyer’ insurance, is a fantastic way to protect your key risks under a single policy.
What is Individual Buyer Insurance?
This type of Trade Credit Insurance focuses on protecting a business against non-payment by a select group of customers or key buyers.
You can choose to insure only a few customers who represent a significant portion of your sales, have a higher credit risk, or who have a substantial outstanding balance.
Individual/Key Buyer Insurance allows you to manage your risk exposure more efficiently, ensuring you are protected against potential losses from your most crucial customers.
- Credit limit in place for the period of the policy
- Non-payment default, insolvency and political risk cover
- Spot transactions, repeat contracts or cover for a small portfolio of buyers
Benefits of Individual Buyer Insurance
Enjoy tailored, highly specific coverage, perfect to protect you from key account non-payment.
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1. Customised Coverage
Unlike Whole Turnover Trade Credit Insurance (that covers an entire client base), Individual Buyer Insurance allows you to tailor your coverage to specific buyers. This customisation enables you to focus your insurance protection on buyers who represent a significant portion of your sales or carry higher credit risk.
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2. Risk Concentration Mitigation
If you rely heavily on a particular buyer or a small group of buyers for a substantial portion of your revenue, the failure of those buyer(s) to pay can have a significant impact on your business. Individual Buyer Insurance provides protection against this concentrated risk by covering the non-payment or default of the specified buyer(s).
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3. Flexibility and Cost Efficiency
Individual Buyer Insurance offers you flexibility in terms of selecting the specific buyers you want to insure. This allows you to allocate your insurance budget efficiently and target the buyers that present the highest risk. By tailoring coverage to specific buyers, you can optimise your insurance costs and focus your resources where they are most needed.
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4. Strategic Risk Management
By using Individual Buyer Insurance, you can strategically manage the credit risks associated with specific buyers. You can assess the creditworthiness of the buyer(s) in question and use the insurance coverage as a tool for mitigating risk.