Trade credit risks arise from three possible causes of loss:
- Insolvency (liquidation, receivership and bankruptcy)
- Protracted default (continued non-payment)
- Political risks (including Contract Frustration, Export Restriction, Currency Inconvertibility and Expropriation) in overseas export market
Protecting your business against the risk of unpaid trade debts not only protects your profits and cash flow but also enhances credit management and increases confidence to sell into broader markets.
Marsh can design trade credit risk management and insurance solutions to suit the needs of your business. We can also arrange an independent assessment of the financial viability of your debtors.
Various insurance solutions are available including:
- Traditional whole of ledger cover
- Major debtor cover
- Specific debtor cover
- Catastrophe cover (aggregate first loss)
- Supplier default (anticipatory credit)