Speak to our friendly team

Prima Insurance

Speak to our friendly team

0330 088 1135

Business Insurance >>

Trade Credit Insurance

The purpose of trade credit insurance is to ensure that businesses are protected if customers fail to pay their bills or pay them later than the terms of payment specify. The ability to get credit at more competitive rates gives businesses confidence to extend credit to new customers. This type of insurance covers products and services that are due within 12 months.

It is possible to obtain trade credit insurance both within the UK and internationally, and trade credit insurers also assist their customers to manage risk by providing advice about credit risks and new markets to help their businesses grow. A business may purchase trade credit insurance on its entire portfolio of customers or on individual accounts.

Standard cover includes:



Business Interruption

Public Liability

Employers Liability


Trade Credit Insurance

The following risks are generally covered by trade credit insurers:

Commercial risk: There is a risk that you will not be able to collect the outstanding invoices from your customers due to financial reasons such as declared insolvency or protracted default.

Political risk: An unpaid claim as a result of events beyond the control of the policyholder or customer, such as political events (wars, revolutions), natural disasters (tsunamis, earthquakes), or economic difficulties, such as currency shortages which mean cash cannot be transferred from one country to another.