Why Choosing the Right Trade Credit Insurance is Essential
Choosing the right trade credit insurance provider is very important. In this blog, we’ll run through how to identify the perfect insurer for your business.
There are a wide variety of Trade Credit Insurance providers in the UK and internationally, many of whom offer a similar product/service.
However, there are minor variations that can make a significant difference to your business.
Certain providers are more geared towards working with specific industries; some policies may have niche module wording that you should be aware of, and many policies come with intricacies and particulars that will change depending on your chosen provider.
Between credit limits, cover amount and other stipulations, it can be incredibly hard discerning between a good provider and one that’s not right for your needs.
In this blog, we’ll talk about the importance of choosing the right trade credit insurance provider, as well as what you can do to ensure your chosen provider is perfect for your organisational needs.
Why is choosing the right Trade Credit Insurance provider important?
Good providers are reliable, understand your needs and take the time to respond to your enquiries.
If your insurance provider doesn’t fully understand your industry or customer base, how can they provide the right cover for you? This is especially important with Trade Credit Insurance; your provider needs to understand the risks involved with your specific customer type.
Not only this, but a good provider will give you security – you should be safe in the knowledge that they won’t withdraw their limits without good reason. Circumstances can change in a turbulent economy, which may affect your limits.
This is relatively rare, but we’ve seen it happen, so you need to be careful.
It can be incredibly hard to discern the best provider for your business needs. This is why it’s so important to have a good relationship with a great broker.
The importance of partnering with a great broker
A great broker will build a strong relationship with your team (and a deep understanding of your unique circumstances and customer base).
They’ll then use their industry knowledge to match you with the ideal Trade Credit Insurance provider (this will not necessarily be the cheapest, as cheapest does not always equal best).
You need to be able to talk with your broker any time you need them. Customer service is really important; it’s your broker’s job to read between the lines and help you find the perfect policy.
How to choose the right Trade Credit Insurance provider
To help you navigate the minefield that is choosing a Trade Credit Insurance provider, we’ve put together a few of our top tips for identifying the good, the bad and the ugly.
Never choose Trade Credit Insurance on price alone
A mistake we see many businesses make is choosing Trade Credit Insurance (or any insurance, for that matter) based on cost alone.
Lowest cost often means worse cover.
This is not universally true, but it often is. Consider why a provider is offering their insurance for such a low rate. Your broker can help you break down their policies and identify where they may be cutting corners.
Identify the capacity that insurers are comfortable with
It’s not uncommon for an insurer to max out their exposure levels (reaching a maximum that they are comfortable with).
In these instances, they may aim to reduce their risk. It’s important that you take this into account when looking for insurance.
Choose a provider with fantastic claims handling and support
A good reputation goes a very long way, especially when you’re shopping around for insurance!
You want to choose an insurer who has a well-established history of great service. You need to know that, in the unfortunate event that one of your clients/customers becomes insolvent, that you can rely on your insurance provider to be there.
They should:
- Respond quickly to your enquiries
- Have a solid, easily understood claims process
- Employ a dedicated claims handling team
Always ask about flexibility in policies
Can a policy be tailored to suit your unique circumstances?
Trade Credit Insurance comes in many forms, including:
Each of these forms of insurance can and should be customisable to suit your needs. Whether that’s allowing for custom credit limits, or accounting for your clients’ requirements, finding an insurer that’s willing to be flexible to your needs is paramount.
Partner with PIB – Trade Credit Insurance specialists
At PIB Insurance Brokers we believe that maintaining our client-focused attitude is the key to ongoing success.
As a result, we always put your business’ needs over our profits. When looking for Trade Credit Insurance, there is no better choice. With PIB, you’ll have a dedicated account executive whose job it is to match you with the perfect insurer, every time.
Policies you can rely on, all with the backing of the wider PIB Group.
For advice tailored to your unique needs, don’t hesitate to get in touch with our Trade Credit Insurance specialists today.