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Of Legacies and Losses

Many small and midsize enterprises leave legacies, to their communities, their families and employees. 

No one knows the precise formula, but there are fundamentals that hold true for almost all.  Businesses that endure are those that continuously excel (the word “luck” seems almost an insult) in these critical areas:

Because Bad Things Happen

You buy insurance for many reasons, but the main one is, to paraphrase Chris Rock, in case bad things happen.  This is a fair assessment of why insurance exists and why we need it.

With trade credit, few seem to think that bad things will happen.  Perhaps this is due to the added attention accounts receivable receives:  regular reviews of your aging, daily cash position, etc.  On other hand, businesses carry insurance for every conceivable catastrophe for which the odds are extremely low: fire, flood, faulty products, and others types.

Credit Insurance Claims

Some consider trade credit insurance a nuisance—they purchased it because their lender required it—while for other policyholders, accounts receivable insurance is a must-have.

Regardless of why you have a credit insurance policy, your ability to get your claims paid is of fundamental importance. 

Any insurance policy is a promise to pay claims based on the rules of the contract being followed.  Insurance companies are not in the business to pay claims out of altruistic motives—they pay them because they must, as they are bound by the contract.

Credit Insurance Specialty Brokers - Why We Matter

When purchasing a trade credit insurance policy, you have many choices, including:

Hiring a specialty broker when buying accounts receivable insurance gives you one less headache—the opportunity not to engage an insurance company.  That is the job of the specialty broker, to directly engage the insurance companies so you don’t have to.

Credit Insurance and Buyer Credit Decisions

The credit insurance market can be one of fragmentation and parties rarely consulting with you about your business.  The actual concept is simple, however, the policy language is complex.  A specialty broker remedies this.

Credit guidance on your clients is an important benefit of credit insurance. Sometimes the most important entities to you are the least important to the credit insurer:  your small and midsized clients.  Of course, large clients of concern to you are also of concern to the insurer.