How to Choose Among Credit Insurance Companies

Basically, a credit insurance is a means of protecting a company from unexpected loss due to unpaid receivables. With credit insurance, the credit insurance policy holder is enjoying the benefit of reducing losses due to bad debts. Credit insurance companies charges its clients with monthly credit insurance premiums that may be based on a certain percentage of sales or amount of outstanding receivables. Credit insurance policies also covers losses on goods and services shipped while the policy is still in effect.

However, in order to enjoy all the benefits of a credit insurance, a company should be able to get a credit insurance from reputable credit insurance companies. With the right amount of patience and persistence, a company should be able to choose a trustworthy insurance provider that will meet his needs. However, there are also helpful tips that you can follow in order to choose the most reliable among credit insurance companies.

  • If you already have a prospective credit insurance provider, learn more about the company. Find out how long they have been in business. If you haven’t heard about their name in spite of their extensive years in operations, try to find out why. They may be specializing in a certain product before their company gained recognition in credit insurance industry.
  • Know also the credit insurance company’s capacity and focus. Are they big enough to attend to all the clients’ specifications? What is their focus? Do they aim at protecting your company’s assets by ensuring your receivables from unexpected loss? Will they help strengthen your credit management? Moreover, find out if their goals are aligned with your needs.
  • Know the extent of service that they can give you. Are they going to guide you through the application process? How are claims made? What kind of assistance are they going to give you if the need to make claims arise? There are some credit insurance companies who only aims at getting you to accept their offer but does not live up to one’s expectations in giving quality service through the policy period.
  • Find out how they are doing in the credit insurance industry. If they belong with the leading credit insurance companies, there’s a great chance that you are in great hands with them.
  • Ask for a quotation from different credit insurance companies so you can make comparisons. With these comparisons at hand, you can tell which insurance company can give you the best package. This will also give you the capability to haggle for better terms. Some credit insurance companies can give quotations by visiting their website. However, it will still be best to visit the insurance company in order to have a more accurate quotation.

Overall, good credit insurance companies should be able provide your business with a credit insurance policy that will help maximize your credit risk management. It should also be able to provide a tailor-made credit insurance for your specific credit insurance needs. Whether it is for your large accounts only, for a specific product line, for local sales or international sales, among others, they should be able to cater to your requirements.