In general, most policies types offer comprehensive coverage against non-payment, insolvency and/or political risk. This coverage is offered globally, however country coverage may vary depending on the carrier. The credit limits are set based upon projected high accounts receivable levels and premium can either be based on sales or determined by the actual credit limits. Below are a few examples however the actual policy names and structure may vary depending on the carrier.

Q: What is a Single Buyer policy?

A: Single buyer policies insure one buyer at its projected high accounts receivable credit limit. These policies are a great tool for opportunities that may arise when the risk on a single buyer outweighs the reward. This can be due to numerous reasons such as a new customer with a sizable sale or the goods have to be exported etc...

Q: What is a Multi-Buyer policy?

A: Multi-buyer policies are designed to cover the majority or entire portfolio of accounts receivable. This is a great tool when you are looking to expand your sale by extending more favorable terms or if you are looking to grow into new markets.

Q: What is a Key Account policy?

A: Key Account policies insure the largest buyers, usually between 2 to 20 accounts. Most company's key accounts usually make up the majority of sales. This policy is strategically intended to bear the burden of a disaster or loss.

* Any of the policy types above can be a Cancellable or Non-Cancellable

Q: What is a Cancellable limit policy?

A: Cancellable polices are designed to be the "watching eye" for the policyholder. Essentially, a credit limit can be cancelled anytime throughout the policy period. This is usually due to negative information that has been reported to carrier for example: multiple past dues reported, a claim was filed, or insolvency etc.

Q: What is a Non-Cancellable limit policy?

A: Non-cancellable policies rely heavily on policyholder's internal credit management policies and procedures. Coverage limits may or may not be changed throughout the policy period depending on the carrier however the limit will stay in place for the life of the policy.