A Replacement For Credit Insurance?


While many of our articles focus on companies not using credit insurance, today I’d like to speak to the companies that are currently insuring their receivables. Whether it be Allianz (formally Euler Hermes), Coface, or Atradius, it’s good to know they are utilizing this safety mechanism to protect them from taking losses on their A/R. Especially as gas prices are creating larger than normal exposures on your aging report. That said, with the inflated gas prices, how are you protecting yourselves from large true-ups at policy end?

We’ve seen large true-ups due to policies priced on too high of a rate on sales or not carrying large enough buffers to adjust for these high prices.

You may make the same profit per gallon but being charged on inflated sales, resulting in extra premium. What if there was another way? 

Today, we are offering balance sheet protection devices that offer the following.

  • Gallons based pricing instead of sales No more true-ups.
  • Claims paid in 3-5 days from filing
  • 100% claims paid out (no co-insurance)
  • Non-cancellable coverage
  • Priced at or below current credit insurance pricing

While a micro-bond might not be right for every company, I’d encourage you to reach out to us and run the numbers. At the very least, we can review your current policy and see how it stacks up against your peers.

BP, Shell, Highland Fuels, and more all utilize this type of program. who also utilize bond programs in lieu of credit insurance. I’d encourage everyone, especially current credit insurance policyholders, to contact us explore how it could help their business.

Cory Watson

Vice President, Trade Credit and Business Insurance

T +1 817-600-1916

M +1 817-715-5678

1600 West 7th Street Suite 300, Fort Worth, TX 76102