Extending credit to customers is often essential to growing a business — but it also exposes you to the risk of non-payment. Trade Credit Insurance is designed to help protect your business against financial loss if customers fail to pay due to insolvency, protracted default or other insured events.

Trade credit is a highly specialised area of insurance. For this reason, Rivergum Insurance Brokers works in partnership with a specialist third-party provider that focuses exclusively on trade credit and debtor risk solutions.

What Is Trade Credit Insurance?

Trade Credit Insurance protects businesses against losses arising from:

• Customer insolvency

• Prolonged non-payment (default)

• Political or economic events (for export trade, where applicable)

It helps safeguard cash flow, balance sheets and trading stability when customers are unable or unwilling to pay.

Who Is Trade Credit Insurance For?

Trade Credit Insurance is commonly used by businesses that:

• Sell goods or services on credit terms

• Have significant debtor balances

• Trade domestically or internationally

• Are exposed to customer concentration risk

Industries that often benefit include:

• Manufacturing and wholesale

• Transport and logistics

• Construction supply chains

• Agriculture and food distribution

• Importers and exporters

• Professional and industrial services

How Trade Credit Insurance Works

While policy structures vary, trade credit insurance typically involves:

Credit Limits

Insurers assess buyers and approve credit limits for individual customers, helping you manage exposure before issues arise.

Ongoing Monitoring

Customer financial positions are monitored, with alerts if risk levels change.

Claims for Non-Payment

If an insured customer fails to pay due to insolvency or default, the policy may reimburse a percentage of the outstanding debt, subject to terms.

Debt Collection Support

Some arrangements include access to professional debt recovery services.

What Trade Credit Insurance Can Cover

Depending on the policy, cover may include:

• Insolvency of customers

• Protracted default (non-payment beyond a defined period)

• Contract frustration or political risk (export policies)

• Loss mitigation and recovery support

Trade credit policies are highly customised and actively managed.

Benefits Beyond Claims

Trade Credit Insurance can also:

• Improve access to finance (some lenders view insured receivables more favourably)

• Support safer growth by allowing informed credit decisions

• Reduce reliance on internal credit assessments alone

• Improve visibility of customer risk

What Trade Credit Insurance Does Not Cover

Trade credit insurance typically excludes:

• Disputed debts

• Sales to non-approved buyers

• Breach of contract or quality disputes

• Known financial issues at inception

Active credit management remains essential.

Why Trade Credit Insurance Is a Specialist Area

Trade credit insurance differs significantly from traditional insurance:

• Policies require ongoing interaction and monitoring

• Credit limits can change dynamically

• Claims processes are closely tied to debt recovery

• Specialist financial analysis is involved

For these reasons, expertise and scale matter.

Our Specialist Partnership Approach

Rivergum Insurance Brokers partners with a specialist trade credit insurance provider that:

• Focuses exclusively on trade credit and debtor risk

• Has dedicated credit analysts and recovery teams

• Works closely with insurers and financiers

• Provides tailored solutions for complex trading environments

Rivergum remains your trusted adviser, coordinating:

• Introductions and policy structuring

• Alignment with your broader insurance program

• Ongoing support and advocacy

Why Arrange Trade Credit Insurance Through Rivergum?

We help clients:

• Assess whether trade credit insurance is appropriate

• Connect with specialist providers

• Integrate credit insurance with broader risk management

• Ensure policy structures align with business operations

Our role is to ensure you have access to the right expertise, not a generic solution.

Speak With Us

If your business trades on credit and wants to better manage debtor risk and cash flow exposure, we can help explore whether Trade Credit Insurance is suitable.

Contact Rivergum Insurance Brokers to discuss your trading arrangements and risk profile.