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.
See how much more you can borrow by having Credit Insurance.
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