What You Need To Know About Credit Insurance Coverage

What to know about credit insurance coverage

Timing is everything. As a business owner or leader, you know this. That is to say, getting things perfectly aligned is essential to your bottom line. How you go about this is unique to the industry that you operate in. For instance, a retailer ensuring products are stocked is working to meet consumer demand. Meanwhile, a manufacturer is making certain that raw materials are available just in time for production. Likewise, a car dealership is focussing on having the right amount of stock in the showroom as well as on order.

Above all, business owners are always playing a delicate juggling act. They are ensuring supply is always meeting demand and corporate balance sheets are well…balanced. This is why failing to pay an invoice or a loan may quickly put your bottom line out of balance.

Thankfully, there’s an insurance product that can help with managing this everyday risk. BDC defines this as, “Credit insurance guarantees a lender will be repaid if a borrower is unable to pay his or her debt due to, for example, death or disability. Although credit insurance is solely for the benefit of the lender, it is purchased and paid for by the borrower. Business owners may be required to purchase credit insurance as a condition of borrowing the money.”1 Every business takes on risk. Credit insurance coverage is an important product that can help you safeguard your bottom line. Below, you can find some important insights about business credit insurance coverage.

So…what can credit insurance Canada do for your business?

If you’ve ever wondered if an invoice is ever going to get paid….you are not alone. However, credit insurance coverage is often a worse case scenario solution. That’s why other solutions like training and coaching your finance team are also so important.

For example:

  • Being proactive or aggressive around collecting unpaid accounts receivables
  • Developing standardized best practices, policies and procedures
  • Using a reputable collections agency, etc.

All of these are good steps to helping reduce impact of not being able to collect on an an invoice.

Coupled with good accounting and finance practices, you can also safeguard your bottom line with credit insurance. This is why delivering credit insurance Canada solutions precisely aligned with specific needs is our focus.

Here at ALIGNED, we take great pride in advocating on behalf of our more than 1,600 clients each and every day and delivering the best business insurance solutions.

Credit Insurance Canada – what you can expect…

Like any insurance product, credit insurance coverage is just one tool in your risk management portfolio. Managing risk is something you do every day and credit insurance coverage is another important way that you can safeguard your bottom line.

For instance:

  • It can cover your Canadian, U.S. as well as Foreign sales/accounts receivables for non-payment
  • Credit insurance coverage can cover large, medium and small invoices, regardless of the size of your business
  • It can cover up to 90% of an unpaid invoice
  • Enables you to free up cash flow, secure and/or increase financing
  • Can help you grow your business with confidence, especially when you are entering new markets

Most importantly, understanding what credit insurance coverage would be an ideal fit for your business isn’t easy. This is why ALIGNED Insurance brokers can secure credit insurance coverage from many leading providers including EDC, COFACE & Euler Hermes so you have choice.

Why working with an ALIGNED insurance broker is the best way to buy credit insurance Canada

We’re 100% here for you! Unlike other insurance brokers supporting wide array of personal and business clients, our brokers are 100% focused on meeting the needs of business insurance clients…only!

In fact, it’s easy to identify an insurance broker who specializes in business insurance. Just ask them what percentage of their book of business is personal insurance. Typical insurance brokers in Canada will likely answer that nearly 70-80% of there business is personal insurance.

In addition, the typical insurance broker is a generalist who works on personal lines insurance most of the time. But on occasion, they may support a business insurance client. ALIGNED insurance brokers specialize exclusively in commercial insurance. We know that experience and expertise are what matter most to Canadian businesses.

Want an insurance broker who’s 100% business? Get ALIGNED today.

We know that timing is always everything. Especially within the constantly changing Canadian insurance marketplace. This is why, now more than ever, it’s important that you choose an insurance brokerage that specializes in business insurance. Now is the time to an ALIGNED business insurance broker about your credit insurance Canada needs. Get expert advice aligned with us now.

Source(s): 1 BDC.ca: Credit Insurance

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