Credit Insurance and Accounts Receivable Insurance

Buying Business Credit Insurance

by Heather Johnson

Buying Business Credit Insurance: The Ultimate Guide To The Who, What, And When Of Credit Insurance

When we stop at the grocery store to pick up a loaf of bread or a container of milk, we are offered multiple choices, giving us the freedom to pick the one that best meets our preferences. Similarly, business credit insurance is not “one-size-fits-all” and working with the right partner can help you get the plan that will best fit your needs.

Who Sells Business Credit Insurance?

The three most common ways to purchase business credit insurance are as follows:

  • Insurance Company Sales Agent: This agent works for a specific insurance company, and as such, only has access to the products offered by that company.
  • General Property & Casualty Broker: A broker will have access to multiple credit insurance plans through multiple companies. This broker sells other types of property and casualty insurance as well. 
  • Specialty Broker: Similar to the general property and casualty broker, a specialty broker will have access to all credit insurance providers. However, the specialty broker only sells business credit insurance and may have a higher level of expertise in this type of coverage.

The terms “agent” and “broker” are often used interchangeably, but there are distinct differences in these roles. However, both agents and brokers are required by law to be properly licensed and must adhere to insurance regulations.

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Insurance Company Sales Agent

  • Represents the interests of the insurer, not the buyer.
  • May or may not have sufficient business experience to advise you. 

General Property & Casualty Broker

  • Represents the buyer, rather than the insurer.
  • Offers wide range of plans from multiple insurance companies.
  • Helps select the right solution at the best possible price.
  • Prepares credit insurance applications on behalf of the buyer.
  • May be able to leverage better rates or other conditions.
  • Does NOT have the authority to bind insurance policies, but must receive a binder signed by the underwriter of the insurance company.

Specialty Broker

In addition to the services provided by the general property and casualty broker, a specialty broker:

  • May be able to explain aspects of credit insurance that you have not considered.
  • May offer additional services, depending on expertise.
  • May offer claims assistance and analysis.

Credit insurance agents, general property and casualty brokers, and specialty brokers can all help you manage the risk of trade credit for your company. Trade credit insurance can be a complex undertaking that is not always easy to understand. These professionals can help you navigate the process of finding, comparing, and acquiring insurance to manage the risk of trade credit by breaking it down into terms and conditions that you can understand.

We offer unbiased credit insurance specialists that find you the best credit insurance provider.

Call +1 (814) 430-3848 

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