Guarantee Trade Credit Solutions
Guarantee Trade Credit Solutions offers a specialized approach to underwriting both Credit Insurance policies and Political Risk Insurance policies. Our team of experienced and knowledgeable underwriters are dedicated to offering you the highest quality of service and ensuring that your policy provides credit risk management, accounts receivable protection, and political risk management.
Working exclusively with insurance brokers across Canada, Guarantee Trade Credit Solutions enhances a broker’s product portfolio by supporting accounts receivable protection for their clients. Our policy management system provides clients with easy access to policy documents and buyer coverage.
Credit Insurance Coverage
Credit Insurance, also known as Trade Credit Insurance, provides a complete range of protection against the direct financial loss from insolvency or non-payment from a customer/buyer for commercial trading terms up to 360 days.
What’s Covered in a Credit Insurance Policy?
- Insolvency of a buyer
- Protracted default (the non-payment of an account after a specified period of time)
- Many policies combine coverage for credit, political risks, and repudiation or buyer non-acceptance of the goods
Benefits of Credit Insurance
- Protects balance sheet assets.
- Propels revenue growth by mitigating the related customer non-payment risk
- Used as a financial tool, a Credit Insurance policy may unlock additional financial flexibility on a bank line and potentially support innovative working capital solutions
- Addresses risk mitigation and financial engineering goals.
Political Risk Insurance Coverage
International presence exposes companies to financial and political risk, especially with increased awareness of political instability and global crises. Political Risk Insurance complements Credit Insurance by protecting businesses in overseas markets.
What’s Covered in a Political Risk Insurance Policy?
- Expropriation, nationalization or discriminatory regulatory practices amounting to nationalization;
- Inability to access an asset due to war, revolution or civil strife;
- Cancellation or non-renewal of import or export licenses;
- Embargo or other import/export restrictions not in place prior to investment or contract;
- Confiscation, seizure or inability to re-export equipment or inventory;
- Non-payment by a Sovereign buyer;
- Failure to honour a Sovereign guarantee; and
- Frustration of payment under Documentary Credits or resulting in the rightful call of a bond or guarantee due to political events.
Let’s Get Started
Credit Insurance and Political Risk Insurance Coverage is offered through independent insurance brokers across Canada. We continue to work with our brokers to tailor coverage specifically for client needs. Find a broker in your area to start the process.