ACCOUNTS RECEIVABLE INSURANCE EXPLAINED
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The door to exporting options is always open with new markets to explore and new opportunities to seize. ALIGNED Insurance can help you succeed in the global marketplace with products like Accounts Receivable Insurance . These solutions help you manage and reduce the risks that come with international trade.
Accounts receivable can be one of the largest assets on your balance sheet, yet they’re often overlooked when it comes to insurance. When you protect your inventory, vehicles, machinery, equipment and buildings – even cash – consider Accounts Receivable Insurance for payments owed to you by all of your foreign customers.
ARE ALL YOUR ASSETS COVERED?
SHARE YOUR FOREIGN RISK WITH ACCOUNTS RECEIVABLE INSURANCE
Accounts Receivable Insurance can protect you for up to 90% of losses resulting from a wide range of commercial and political risks, such as:
- insolvency or default of your foreign customer;
- payment delay caused by a blockage of funds or transfer difficulties;
- refusal of goods by your foreign customer (provided you meet the contract terms);
- war or hostilities in your customer’s country or between two or more other countries; and
- cancellation or non-renewal of export or import permits.
WHAT ELSE CAN YOUR ACCOUNTS RECEIVABLE INSURANCE POLICY INCLUDE?
You can opt for:
- protection against contract cancellation by your customer;
- insurance for letters of credit transactions on a country-by-country basis; and
- invoicing in foreign currencies.
HOW MUCH DOES ACCOUNTS RECEIVABLE INSURANCE COST?
With Accounts Receivable Insurance, you pay only for what you sell. Your rates are based on several factors, including:
- type of coverage selected;
- payment terms;
- type of goods being exported;
- countries involved; and
- buyer credit risks
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|
Sources: This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. All rights reserved. Source: edc.ca