Are You Covered?
In order for your receivables to be covered, you must actively manage your policy. All Ex-Im Bank credit insurance policies have specific text outlining your responsibilities as the Insured so as to comply with the policy and maintain your coverage. Your responsibilities include among other things:
• Consulting the Country Limitation Schedule (CLS);
• Monitoring buyer credit limits & buyer payments;
• Reporting shipments & paying premiums monthly; and
• Maintaining diligent records - of buyer credit information, A/R management, proof of export, etc.
In our summer coverage series, we will outline some of these policy compliance issues and what you can do to make sure your insurance is working for you.
Why it's important
Non-compliance with policy guidelines can impact your ability to get paid in a claim situation, can impede your ability to access financing, can impact the premium rates that you pay, and can affect your ability to use discretionary credit authority to approve your buyers. It has been noted that up to 40% of credit insurance claims are denied due to violations of policy terms. Top reasons claims are denied include:
• Unpaid premiums
• Late claim filings
• Lack of proof of export; proper documentation
• Failure to stop shipping to buyers past due 90 days
• Disputes
As your broker, we are here to help. We will gladly review the details of your policy with you. We can also provide training on the online policy management tools, show you where your policy discusses these issues, and make sure that you have the best coverage to suit your business needs. Contact Us today!
As always, we are here to support you. Please feel free to contact us at TAG if we can be of assistance in any way.
Kind Regards,
Curt, Leslie, Ursula, Jackie and Sara
Trade Acceptance Group, Ltd.