Short-Term Key Account Credit Insurance Policy
The Short Term Key Account Credit Insurance Policy allows the policyholder to insure a group of their key buyers. Companies choose Short Term Key Account Policy as a means to mitigate the risk of non payment for their larger credit exposures. This policy can cover single or multiple shipments to these buyers during a twelve month period. This policy can be written for Domestic buyers (companies billed within the United States) as well as Export buyers (companies billed outside the United States). The Short Term Key Account Policy provides companies with an excellent solution for mitigating catastrophic credit losses.
Policy Characteristics
The characteristics of a Short Term Key Account Policy are as follows:
• This policy insures several top credit exposures
• Coverage is for Commercial Risk and Political Risk
• No Deductible
• Typical Indemnification Rate is 90% (98% for bulk agriculture) which means policyholder will retain 10% of the risk
• Premium rates can be negotiated with the private insurance market or are obtained from an on-line rate schedule issued by The Export-Import Bank of the United States (EXIM) specifically for their insurance programs
• Eligible Sales terms are up to net 180 days for all products and 181 to 360 days for capital equipment, quasi-capital equipment, and bulk agricultural products
• Up to a 12 month policy period
• Policy can cover Multiple currency
• Policy allows for an “Assignment of proceeds” for enhanced bank borrowing
• Minimum premiums vary but typically start at $2,500
• Policies offer reasonably short waiting periods (90 days) for claim filing
Buyer Profile
The profile of Short Term Key Account Buyers may include:
• One or more shipments to Multiple Buyers
• Premium based on approved credit line
• Up to 180 day open account Sales terms
• 90% Indemnity rate (98% Bulk Agriculture)
• Multi-Currency
• Reasonably short Waiting period for claim filing
• Up to 12 month policy period
• Minimum Premiums
• Assignment of Proceeds
Contact EIA-Global and apply now for your Trade Credit Insurance & Export Insurance needs - your cost effective way to protect against the risk of non-payment of your trade account receivables.
