Trade Credit insurance is a straightforward, cost effective way to ensure you get paid for good and services you supply. In an increasingly difficult economic climate Trade Credit insurance protects you from the risk of bad debts when your clients become insolvent.
Trade Credit Insurance Specialists
Protect your cash flow and profitability
Protect your cash flow and profitability
Trade Credit insurance is a straightforward, cost effective way to ensure you get paid for goods and services you supply.
In an increasingly difficult economic climate, Trade Credit insurance protects you from the risk of bad debts when your clients become insolvent. This enables you to protect your cash flow and profitability providing confidence to offer large lines of credit to your clients. Alongside claim payments Trade Credit insurance provides information, monitoring services and support via in-house debt collection or reimbursement for independent debt collection. Lockton work with Slater Byrne Recoveries to ensure the best outcomes for our clients.
Lockton’s team utilise decades of experience, having held senior regional positions with global insurers and brokers, bringing an enviable combination of service, credit risk, analytics and structuring expertise to the market.
We work closely with corporate c-suites, banks and financial institutions to ensure the most appropriate structures are designed and implemented. Our team can structure and negotiate entire credit and political risk solutions with claims and recovery guidance through to complex cross-border insurance solutions.
Data analysis is critical
Our underwriters have sophisticated commercial databases and employ teams of credit analysts throughout the world to constantly monitor your exposures, allowing the policy to become a credit management tool that can help you to avoid bad debts in the first place. This enables you to trade with the confidence to take on new customers and provide increased credit lines to existing clients knowing your outstandings are insured. This is especially useful during a difficult economic cycle.
Our Products and Services
We offer a range of trade credit covering:
Whole of turnover
Excess of loss
Major buyer
Single risk
Small and Medium Enterprises (SME)
Mid to long term contracts (1-5 years)
Structured products incorporating security and asset finance
Asset finance
Financial institution cover
Receivable and supplier financing
The services WorkPac has received from Lockton has been consistently market-leading, proactive and attentive.
Key Contacts
Sam Rodda
Client Manager, Trade Credit Solutions
Get in touch
Questions? We'll guide you in the right direction.
Ask us about our products, services or anything else on your mind. Our insurance and risk specialists are here to help.
Talk to our teamTrade Credit Insurance FAQs
What is trade credit insurance and how does it work?
Trade credit insurance is designed to protect businesses from financial losses due to nonpayment of commercial debts. This includes protection against buyer insolvency, protracted default, or other credit risks that might prevent payment for goods and services. Beyond this core function, the policy supports the entire credit process, encompassing three primary components: Information, Collections, and Claims. Also referred to as accounts receivable or bad debt insurance, the policy is designed to typically cover up to 90% of the invoice value for eligible losses. It operates as a dynamic, “live” policy, evolving to meet the changing needs of the client.
How can businesses leverage trade credit insurance?
For creditors looking to protect themselves from buyer defaults, trade credit insurance is a key risk mitigation tool. This type of policy is designed to provide protection – subject to conditions – against non-payment for goods or services sold on credit terms. To fully leverage trade credit insurance, businesses should follow best practices: report overdue accounts on time, foster transparency between customers and insurers, and regularly review credit limits to align with evolving exposures.
What are the key benefits of trade credit solutions for my business?
In addition to payment protection, trade credit insurance offers benefits such as: Confidence to extend credit: supporting growth by enabling businesses to work with new or overseas customers who might otherwise be deemed too risky. Enhanced access to funding: increasing banks’ willingness to lend to insured businesses, often at more competitive rates. Ongoing monitoring: insurers monitor customer creditworthiness and assign credit limits based on exposure, helping to provide peace of mind for policyholders. Proactive insights: insurers provide early warnings of financial instability among buyers, enabling businesses to act before issues escalate.
Is trade credit insurance the right risk mitigation tool for businesses impacted by a customer’s insolvency?
Trade credit insurance is a valuable risk mitigation tool in today’s uncertain economy, especially in the face of insolvencies. Credit insurers can assist with debt recovery efforts, even for uninsured invoices, making it particularly useful for businesses navigating insolvency processes. With this coverage, companies can offer more competitive credit terms to customers without the fear of default, strengthening business relationships while staying protected. Trade credit insurance can also be tailored to specific industry risks, such as those in construction, retail, and manufacturing - sectors heavily impacted by insolvencies in Australia.
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