Whole-turnover Trade Credit Insurance is designed to cover a broad portfolio of eligible trade debtors.

Rather than selecting only one problem customer, the business insures the agreed credit portfolio according to the policy terms.

Why do insurers use a whole-turnover approach? #

Trade Credit Insurance works by spreading credit risk across a portfolio of customers.

A whole-turnover arrangement can reduce the risk of a business seeking insurance only when it believes a particular customer is likely to fail.

Does every customer have the same credit limit? #

No.

The amount insured for each customer can depend on a buyer credit limit.

Depending on the policy, limits may be:

• Approved by the insurer.
• Automatically available within specified parameters.
• Subject to the insured’s own discretionary credit limit.
• Reviewed as the customer’s circumstances change.

Does whole turnover mean absolutely every sale is insured? #

Not necessarily.

Policies can exclude or treat differently certain buyers, transactions or types of business.

The definition of eligible turnover and insured buyers needs to be checked against the policy.

Who can whole-turnover cover suit? #

It can suit businesses that regularly sell to a portfolio of commercial customers on credit terms and want systematic protection across the debtor book.