In-law Insurance?

It seems you can insure almost anything… but in-laws? While I’m fortunate to have a great (okay, good) relationship with my in- laws now, I remember when I first started dating my wife. It took patience and time to really get to know each other. Could the same thing be said about new customers? How about a new portfolio of customers in an acquisition? While I’m not referring to actual in-laws, M&A activity has increased, and many companies are inheriting new customers. We work with private equity groups to help pre-screen these “in-laws” and identify the good versus the bad. While this information is used to help negotiate, it also helps companies get a better idea of who they are selling to.

Credit insurance is a tool that helps screen and monitor customers. While companies may have robust credit departments, credit insurance carriers have access to information that is unavailable to most businesses. One carrier alone has 87,000,000 customers in a database that requires over 55,000 policyholders to report past dues. This is powerful and helps companies get ahead of potential non- payment of receivables.

If you’re looking to get extra information about your customers, I’d encourage you to contact us. We can pre-screen these companies and, if needed, help determine a quick ROI in regard to insurance cost per gallon.

If you’re not familiar with credit insurance, it is a policy that guarantees your receivables. Simply put, if you sell product to a company and they don’t pay, you file a claim and the insurer pays you. Businesses don’t think twice when insuring their trucks, buildings and equipment; however, their A/R can make up to 40% of their assets but is the most commonly uninsured. Additionally, you’re more likely to file a claim on your receivables than the fire insurance for your building. For a fraction of a penny per gallon, it makes too much sense to not explore how credit insurance can help your credit department and cover those in-laws.

In-law Insurance?

For more information,

contact Cory Watson

at Cory.Watson@Leykell.com

or 817-715-5678