Trade Credit Insurance Calculator

Trade credit insurance protects businesses against non-payment by customers. If a buyer defaults, becomes insolvent, or delays payment beyond a specified period, the insurer pays out (typically 85-95% of the debt).

UK trade credit insurance premiums typically range from 0.1% to 0.5% of insured turnover. For a £2m turnover business, this is £2,000-£10,000 per year. Rates depend on industry, buyer quality, and claims history.

Major UK providers include Atradius, Coface, Euler Hermes (Allianz Trade), QBE, and AIG. Specialist brokers include WTW and Marsh. The market is dominated by the big three: Atradius, Coface, and Euler Hermes.

Standard cover includes: customer insolvency/bankruptcy, protracted default (non-payment after specified period, e.g., 6 months), political risk (for export), and dishonoured letters of credit.

No. It is voluntary. However, banks may require it as a condition of invoice discounting or factoring facilities. Some supply chain agreements also require it.

Traditional trade credit insurance is better suited to larger businesses (£1m+ turnover). Smaller businesses can use selective single-buyer cover or platforms like Nimbla for individual invoice protection.

To claim: notify insurer when debt becomes overdue (usually within 30-60 days), pursue the debt according to insurer requirements, prove all collection efforts, then submit formal claim. Payout typically takes 30-90 days after insolvency confirmation.

If one customer represents more than 20-25% of revenue, insurers may cap that buyer's credit limit, charge a higher premium for that exposure, or exclude that buyer from cover.

A credit limit is the maximum amount an insurer will cover for a single buyer. You can request increased limits, but insurers may decline if they assess the buyer as high risk.

Most policies can be structured for domestic only, export only, or both. Export trade credit insurance also provides political risk cover (war, currency controls, government default).

Many invoice finance providers require trade credit insurance on the underlying debts. The insurer and financier coordinate to protect both parties from bad debt.

Platforms like Nimbla offer single-invoice credit insurance from around 0.5-2% of invoice value. This suits businesses needing protection for one-off large transactions without a whole-turnover policy.