If an insured customer becomes insolvent or an eligible debt remains unpaid, a Trade Credit Insurance claim may be available.

The claims process depends on the policy and cause of the non-payment.

What information can be required? #

Insurers may ask for documents such as:

• Outstanding invoices.
• Statements of account.
• Purchase orders.
• Evidence goods or services were supplied.
• Payment terms.
• Correspondence with the customer.
• Records of debt collection activity.
• Evidence supporting the amount owed.
• Details of security, guarantees or retention of title.
• Information about the approved credit limit.

Export claims may require additional shipping or delivery documents.

Why are policy conditions important? #

The insurer may check whether the business complied with requirements concerning:

• Buyer credit limits.
• Maximum credit terms.
• Maximum extension periods.
• Reporting overdue accounts.
• Stopping further supply where required.
• Loss minimisation.
• Turnover declarations.

Failure to comply can affect the amount recoverable.

Does the insurer always pay 100% of the debt? #

No.

Trade Credit policies commonly insure an agreed percentage of an eligible loss.

An uninsured portion, excess or other policy restriction can apply.

What happens if money is recovered later? #

Where the insurer or business later recovers money from the customer, insolvency process, guarantor or another source, the recovery is generally dealt with in accordance with the policy.

Notify Webber Insurance promptly where a customer failure may result in a Trade Credit claim.