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8 Questions to Ask When Vetting Trade Credit Insurance Companies

Around 20% of small businesses in the US fail within the first year. This can stem from a large number of causes, but poor financial management is one of the most common.

The good news is there are steps you can take to maintain financial stability. Purchasing trade credit insurance is a notable strategy. However, not everybody understands how to vet potential trade credit insurance companies.

In this guide, we'll explore reliable ways to get started so you can make the most of this opportunity. Let's look at what you need to know.

1. What Is the Claims Process Like?

It should come as no surprise that this is one of the most important questions to ask a trade credit insurance broker. The ease with which you file a claim plays a large role in your overall satisfaction. To clarify, imagine what it would be like dealing with an insurance company that has a convoluted claims process.

You could encounter unnecessary delays; there's even a chance you can't handle the claim on your own. Ideally, you'll have access to a professional who can help you with the claim. This will streamline the process and reduce the stress you deal with.

2. What Is Your Customer Support Policy?

No matter how well you prepare, it's impossible to fully prevent potential issues. Overcoming these without the right help can be difficult or even impossible.

Never choose an insurance agency that doesn't have a robust customer support policy. It's customary for firms to offer some form of 24/7 support.

This could be through the use of chatbots or outsourced employees. Regardless of how they implement their support policy, it should be as accessible as possible.

3. What Coverage Do You Provide?

There's a chance the trade credit insurance provider you're considering doesn't offer sufficient coverage. Ask for a detailed explanation of how their policies can accommodate potential situations.

Not having the right coverage in place will cause you to waste money on expensive premiums. You also won't get the support you need if problems manifest.

There should be no shortage of coverage options to choose from. These are often segmented by the amount of coverage and the circumstances in which they'll take effect.

4. Do You Have Client Testimonials?

Regular customer reviews are great ways to learn about what the insurance provider is capable of. However, they aren't as detailed as client testimonials.

There's also an abundance of fake reviews online that can be difficult to sift through. These are often posted in batches and contain identical keywords.

Testimonials are detailed accounts that offer key information about different aspects of working with that insurance provider. More often than not, they will answer the most important questions you have. It's not difficult to find an insurance provider with testimonials, as they tend to proudly advertise them.

5. What Is Your Pricing Structure?

Never move forward without gaining insight into the company's pricing structure. You should also ask for a full breakdown of your bill's elements.

This will help eliminate issues you may have otherwise overlooked. To elaborate, imagine your monthly premium was substantially higher than you anticipated.

Upon investigation, you find that a large portion of this amount goes toward unnecessary fees. Inquire if they offer discounts for extensive agreements.

It's not uncommon for insurance providers to give their clients lower rates if they sign up for a multiyear policy. Inquiring about this topic could potentially save you thousands of dollars.

6. When Can I Get Paid?

Your provider should be transparent about how long it will take to get paid after you file a claim. This information is crucial to consider, as it will impact how you manage your budget. Imagine a scenario where you need to leverage your insurance policy to accommodate unpaid customer invoices.

If you are left in the dark about when you will receive this money, it could be more difficult to make key decisions. There's no shortage of factors that influence how long it will take, such as the amount your coverage provides and the complexity of your claim.

Your prospective insurance company should have answers to different hypothetical scenarios. If you don't feel like you understand what to expect, don't be afraid to look elsewhere.

7. What Affects Eligibility?

Not everyone will be a candidate for every type of coverage the insurance provider offers. The last thing you want is to choose a provider and later discover you're ineligible for the policies you need.

A common scenario where this issue arises is while scaling your company. As your business grows, so will its trade credit insurance needs.

This is because larger businesses have a higher chance of accumulating substantial unpaid invoices. Ask the insurance company to provide a clear outline of what impacts eligibility. The more you understand these criteria, the easier it will be for you to make the right decision for your company.

8. Will I Have a Dedicated Agent?

The situation to avoid is one where you sign up for an insurance policy and then don't know who to contact. Look for insurance providers who will have dedicated agents available to handle your needs.

This individual should be easy to get in touch with and enthusiastic about helping you. Before choosing a provider, ask if they can offer additional information about the potential agent you'll collaborate with.

Companies that deflect questions about this topic are ones that you should avoid. There's a good chance you'll encounter problems by working with them.

Vet Your Trade Credit Insurance Companies

To get the right results for your situation, it's essential to vet the trade credit insurance companies you encounter. The information in this guide will ensure you hit the ground running and avoid obstacles you may have otherwise encountered.

ARI Global is a premier trade credit insurance provider that aims to deliver the best possible customer experience. We personalize our approach to your specific needs so we can determine the right course of action. You can learn more about what we have to offer when you schedule a consultation today.