Credit Insurance - Frequently Asked Questions
1. Who is Arbutus Risk Management?
We are a specialist credit insurance broker with over a decade of experience working in the credit insurance industry. We have access to all the major credit insurance companies in Canada to help you find the right solution for your business.
2. What is Trade Credit Insurance?
Trade credit insurance provides protection against unexpected bad debt losses due to customer insolvency, slow pay or political risk.
3. How much does it cost?
There are a lot of variables that determine the premium rate but in most cases you could expect a rate of less than 1% of insured revenue and for many companies this rate will be in the 0.25%-0.50% range. As a general rule, the larger the insured revenue the lower the rate.
4. How does credit insurance benefit my company?
There are a number of benefits to having your receivables insured. Not only will the insurance policy protect you in the event of an unexpected customer default or bankruptcy, but it also transforms your accounts receivable into a secured asset that can be used by your financial institution for better borrowing options. In addition, all the insurance companies carry a vast amount of credit and payment information on companies all over the world, allowing you to make faster, more informed credit decisions to help reach your growth objectives
5. Do I need to insure all my customers?
The short answer is no. For many companies it makes sense to insure all their customers but it is possible to insure a single debtor, a select buyer group or a group of buyers based on geographic location. We will do a full consultation to understand your business and build a tailored policy that meets your needs.
6. Why should I use a broker?
With one application we can obtain multiple quotes for you. We understand the market and can leverage our knowledge and experience to get you the best policy in terms of rate, coverage and structure. As a broker, we have direct access to the insurance companies and can be a valuable intermediary that provides ongoing support to help with questions around coverage, claims and policy renewals.
7. I already have a credit insurance policy, should I still speak with Arbutus Risk Management?
Absolutely. You’re already experiencing the benefits of a credit insurance policy but perhaps aren’t using it to it’s full potential. There is no cost to add a broker and we will do a full review of your policy and coverage to make sure that you understand your obligations and have the right coverage and endorsements in place. We can also review pricing and get competitive quotes at renewal if necessary.