Credit Insurance

Do you worry your customers might not pay your invoices? Are you wondering about doing business with that new contact? With Euler Hermes credit insurance solutions you can stop wondering and start doing business.


What is trade credit insurance?


Trade credit insurance protects your business against both commercial and political risks that are beyond your control. It improves the quality of your business and helps you to grow profitably, minimizing the risk of sudden or unexpected customer insolvencies. Credit insurance gives you the confidence to extend trade credit to new customers. It also improves access to funding, often at more competitive rates. Trade credit insurance is for short-term account receivables, due within 12 months.

How does credit insurance work?


Credit insurance protects your company against the failure of your customers to pay trade credit debts owed to you. These debts can arise following a customer becoming insolvent or failing to pay within the agreed terms and conditions (protracted default).


How it works is simple: Euler Hermes' network of risk offices monitors the financial performance and well-being of your customers. We allocate each of those customers a grade that reflects the health of their activity and the way they conduct business.


From this risk assessment, each of your buyers is then granted a specific credit limit up to which you can trade and claim should something go wrong. This limit may be revised upwards or downwards as new information becomes available.


How does credit insurance work?

Throughout the lifetime of the policy, we inform you of any changes that might impact the financial health of your buyers and their ability to pay you for goods or services you have delivered. If your buyer cannot or will not pay you, you will be insured and indemnified up to the limit of your policy. We can also manage the collection of the debt for you if/should the need arise.


Four reasons why credit insurance improves the profitability of your business


Trade receivables can represent up to a third of the total assets on a company’s balance sheet. Managing your trade receivables effectively, therefore, plays a key role in:

  • Delivering comprehensive protection against the risk of insolvency
  • Enhancing your customer relationships
  • Improving banking relationships and access to finance
  • Supporting sales expansion

Credit insurance example


If your company's profit margin is 5% and one of your buyers defaults on a debt of $100,000, then you will have to produce additional sales worth $2,000,000 to make up for lost profits. Non-payments weaken your company and lower its investment capacity. A credit insurance policy helps manage your account receivables and mitigate your losses in the event of non-payment. We tailor our credit insurance solutions to your company's size, sector and business needs. Discover more about our credit insurance solutions for small-medium enterprises (SMEs), large-sized business and multinationals.


​​​​​​​​​​​​​​​

​For Small companies


Simple, affordable and easy to implement trade-related insurance solutions that enable you to safely develop your business.​

​Medium & Large companies


Flexible trade-related insurance solutions to fit your sector, site and business ambitions domestically and abroad.

​Multinationals


Tailored and flexible risk solutions enabling you to efficiently manage your risks worldwide.


> Find out more ​​
Find your local solution
Find your local solution
Find your local solution