A business’s accounts receivables are generally the largest asset on its balance sheet. It is also, most likely the only asset on the balance sheet that is uninsured. Also the perception of risk/reward is often skewed. A company will pay to insure the return of a $500 smart phone, which if lost is a nuisance but will stand naked on a $500,000 credit risk, which if lost could be catastrophic.
Independent agents and brokers should view credit insurance with both an offensive and defensive strategy. All national and most regional insurance brokerages have internal departments dedicated to trade credit and political risk insurance. With only single digit market penetration these brokers see the upside potential.
The defensive posture is that these national brokers, understanding the limited number of insured’s use Trade Credit Insurance as a wedge product into the larger relationship. Imagine your clients hearing from your competitor “If you broker has not discussed insuring the largest asset you have, what else have