Safeguard Your Business in Uncertain Times

Safeguard your business in uncertain times with credit insurance

In today's global economy, ongoing geopolitical and social events continue to heighten the risk of customer defaults and bankruptcies. The first half of 2023 saw a staggering 53% increase in corporate filings compared to the previous year, marking a 12-year high.

In this challenging economic landscape, businesses of all sizes must protect themselves against the risk of unpaid invoices. Credit insurance is a straightforward and highly effective solution to safeguard your business from unexpected losses due to your customers’ financial struggles.

AU Group leverages nearly a century of expertise and proven strategies in credit insurance to provide our clients with unmatched guidance and tailored solutions to secure their company’s long-term financial health. 

What is trade credit insurance? 

Credit insurance is a policy that protects the money your customers owe you when you sell goods or services on open terms.  Carriers help evaluate the financial health of your accounts and ensure payments on creditworthy companies.  

Credit Insurance policies can be designed to cover losses due to the following occurrences:
 

• Bankruptcy
  • Reorganization or liquidation of a customer
• Slow Payment
  • When customers cannot repay their debt within the agreed-upon terms
• Political Risk    
  • Nonpayment due to political events or conditions in foreign 

Credit Insurance Options 

While credit insurance is a highly customizable product, most policies fall into one of three broad categories:  

• Comprehensive Credit Insurance: These policies cover every account to protect you completely. The insurer's underwriting team reviews existing customers and new prospects to determine their creditworthiness while providing ongoing monitoring and alerts for potential changes.  A comprehensive policy can include discretionary coverage that you can control and is designed to align with your unique portfolio of customers.
• Selective Coverage: This type of coverage allows you to insure only a selected segment of your portfolio.  This can be your international accounts, largest customers, or even high-risk accounts through specialty carriers.  
• Excess credit insurance: this solution is designed for companies with strong existing credit management practices combined with an external information solution. Excess credit insurance is particularly appropriate if your company has a large number of outstanding clients, in order to protect against exceptional accumulations of default risk. Excess credit insurance only applies to transactions within the OECD. 

AU Group, a tailor-made approach to credit insurance 

AU Group is a family-owned credit insurance advisory firm that has been a leader in the industry for nearly 100 years. Our unique approach combines a deep understanding of your needs and goals with extensive knowledge of all available carriers and solutions. We provide expert advice and best practices to ensure you find the right solution for your business.

Discover our expertise