Trade Credit Insurance for P&C Brokers: A Key Partnership

Many property & casualty (P&C) brokers are unfamiliar with trade credit insurance. Why? This policy often falls outside their typical focus for several reasons:

• It’s tied to a business’s financial strategy, often influenced by banking relationships.
• It’s managed by finance or credit teams, not risk managers.
• It’s seen as a tool to support sales, rather than pure risk management.

Yet, at its core, trade credit insurance protects a business’s accounts receivable against non-payment—something that can directly impact financial stability. Businesses looking to manage international transactions can benefit from the Export-Import Bank of the United States (EXIM) trade credit insurance programs.

Why Brokers Should Pay Attention

Some brokers recognize the risk of credit losses and raise the need for credit insurance. However, more often, it’s the client who reaches out when a customer fails to pay, asking if insurance can cover the loss.

Like any insurance, trade credit insurance is technical. Brokers must understand policy terms, claims requirements, and coverage details before recommending it. Many brokers rely on experts like Securitas Global Risk Solutions to ensure their clients have the right coverage and support. The International Credit Insurance & Surety Association (ICISA) provides valuable insights into the technical aspects of trade credit insurance.

Case Study: The Cost of a Mismanaged Credit Insurance Policy

A few years ago, a broker approached us with a major issue. His client had filed a credit insurance claim, but the insurer denied it. Why?

• The broker never reviewed the policy terms with his client.
• The client didn’t understand filing deadlines or documentation requirements.
• As a result, the claim was invalid.

The client, frustrated, fired the broker—costing the brokerage significant revenue over a small claim. Had the broker ensured his client understood the policy, this could have been avoided. Protecting businesses from credit risks is a key priority, and the Federal Trade Commission (FTC) offers guidance on managing fraud and credit-related threats.

How We Help Brokers and Their Clients

At Securitas, we partner with brokers to provide expertise and service that strengthens their client relationships. Here’s how:

• End-to-End Support: We gather all application details, complete submissions, and secure competitive quotes.
• Policy Comparisons: We summarize key terms, conditions, and coverage limits.
• Education: We ensure insureds fully understand policy requirements.
• Ongoing Advocacy: We help secure credit limits and navigate policy matters.
• Claims Assistance: We proactively guide insureds through the claims process to avoid denials.

Our service doesn’t end with a policy sale. We continuously update servicing plans based on our clients’ sales, revenue changes, and evolving credit requirements.

Let’s Work Together

We help brokers protect their clients—and their own businesses—by ensuring trade credit insurance is handled correctly. Have questions? Let’s talk. We’d love to be your resource for credit insurance solutions.

Since 2004, Securitas Global Risk Solutions, LLC (“Securitas”) has helped clients develop credit and political risk transfer solutions that provide value on numerous levels. As an independent trade credit and political risk insurance brokerage, Securitas is focused on developing comprehensive solutions that meet the needs of clients, ensuring a complete understanding of policy wording and delivering excellent responsive service.