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  • Writer's pictureKarl

How to Get An Affordable UK Credit Insurance Broker

When you are about to get a UK credit insurance broker for your organisation, there might be several questions poking in your head. The first question must be, “Why do I even need insurance?” Well, credit insurance protects your company against any customer who fails to pay their bills. Business-to-business insurance, where “customers” are referred to as the companies who pay you for goods and services.

Bankruptcy has always been a lingering threat. If any of your customer companies might go out of business, there’s no guaranteed payment. Even if you do get a somewhat amount from them, it could be expected after months. As a creditor, such as your company, should ensure that they have a backup plan to make cash-flow work.

A credit insurance broker is knowledgeable in finances, bank transactions, capital markets, credit insurance, and other aspects of the financial department. Therefore, you must understand your business needs when searching for a credit insurance broker. There are three main aspects that you should plan and analyse when considering any UK credit insurance broker.

1. Price

When you decide to buy insurance, a promise of protection against unknown losses is made to you. Losses in credit can vary from smaller amounts to considerably more significant volumes of money. Losing a vast credit amount can even threaten the survival of your organisation. Huge debts are one of the top reasons behind bankruptcy.

Having a dedicated credit insurance broker will serve their time and resources to offer quality services daily. On average, a broker tends to dedicate 80% of their time in managing the existing clients and only 20% in acquiring new ones.

A credit insurance broker many offers the following:

  • · A senior partner heading the accounts

  • · A senior account executive

  • · A junior account executive

  • · An in-house tech department focused on the quality and audit of insurance policies

  • · A credit report department to defend clients’ credit limits turned down by their insurers

  • · A specialised department for credit claims

2. Offered Services

Credit claims are complicated than property or casualty claims. They require specialised professionals with a track record of successful credit insurance claims. Having enough proven claims and amounts paid defines a broker’s success. Such figures should be provided by the broker and considered by you before making any decision.

The broker should deliver their internal resources. They should be able to answer all the insurer’s questions, defend their client’s point-of-view on credit limits, policies, and interpretations, and have in-depth knowledge regarding the trade credit market and intelligence.

3. Trusted Advisor

Your broker should act as your trusted advisor with only your benefit as the goal. Apart from their team, the client should be able to count on the two senior executives managing the accounts. The executives should be readily available if any crisis occurs.

Final Verdict

Just take your time and look for an appropriate agent for your company, and someone you can count on. Ensure that their experience and professionalism is on the top scale. Check their credentials, examine testimonials, and request a previous client list.

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