Receivables insurance
Insuring a trade credit (receivables insurance) consists in the provision, by the Insurer, of security against the risk of property losses incurred by the lenders on account of failure to receive, from the borrowers, the receivables on account of delivery of goods, the payment time limit of which has been deferred from the moment of collection of goods.
Insuring a trade credit (receivables insurance) consists in the provision, by the Insurer, of security against the risk of property losses incurred by the lenders on account of failure to receive, from the borrowers, the receivables on account of delivery of goods, the payment time limit of which has been deferred from the moment of collection of goods, because of:
- a delay in payment (in comparison with the agreed time limit),
- contractor's insolvency (e.g. declaration of its bankruptcy),
- events of political character – in the case of foreign contractors (e.g. decisions and legal provisions in the countries where their registered offices are located).
The insurer analyzes the creditworthiness and financial condition of the contractors who are to be covered by the insurance, and then grants them with individual credit limits – up to the levels at which damages will be paid out in the case of occurrence of any of the above events.
The Attis Broker team, as a staff of experienced specialists in the field of insuring trade credits, offers professional preparation of a comprehensive insurance program, consisting of:
- analyzing the portfolio of contractors, sectors, receivables structure and applied procedures of granting trade credits,
- preparing an individual offer of insurance taking into account the specific character of the conducted activities,
- assisting in implementing the program in the company for the purpose of using the product possibilities in the best manner,
- advising and assisting in the scope of problems associated with loss adjustment.