How does it work?
Credit Insurance is built around the following principles:
Guaranteed in-force receivables (or agreement)
The credit insurer will accept to guarantee your in-force receivables
up to a limit. The insurer will separate clients in two categories:
named debtors (whose in-force receivables are high), and non-denominated
clients (with a low in-force receivable threshold: less than Euros
5000).
Percentage protected
The insurer will accept to reimburse a percentage of your receivables
(anywhere between 65-80% depending on which of your clients’
receivables you wish to insure).
Insurance premium
The premium is the cost of the insurance, which can be calculated
as a percentage of the insured in-force receivables or as a percentage
of your global revenue. This percentage will vary with the country
in wich you operate.
Annual aggregate limit
This is the maximum annual limit the insurer will pay, regardless
of the total amount of unpaid bills (anywhere between 15 a nd
50 times the premium).
