There are many ways to obtain a Credit Insurance policy, but there is no such thing as a basic Credit Insurance policy. The most important step is getting a policy that is designed specifically for your business.
|Type of Provider||Benefits|
|Specialty Broker/Expert selling only Credit Insurance||Has access to all Credit Insurance providers and works for you|
|Insurance Company Sales Agent||Works for the insurance company.
Only has access to thier employer's Credit Insurance
|General Property & Casualty Broker||Generally has access to all Credit Insurance providers|
While the ultimate driver for pricing credit insurance is based on assessment of risk, there are a variety of methods to calculate the annual premium. The following are the most common:
Many insurance carriers will rate the underlying debtors to come up with a financial stress score on the risk of the pool.
Other factors come into play, as well, such as:
In summary, the industry has moved toward pricing based on sales (basis points), inasmuch as it is a more familiar methodology for the policy holder. Know, however, that it may not be the best solution for you, so ask many questions.
Want to speak to a professional about your Credit Insurance needs?
See how much more you can borrow by having Credit Insurance.