Making a Credit Insurance Claim

What it covers

Trade credit insurance is designed to protect a business against the risk of customers not paying — for example, because they become insolvent. In broad terms, it can cover a portion of an insured receivable that goes bad, helping to limit the impact of a major failure on your cash flow. Exactly what is covered, and to what extent, depends entirely on the policy you hold.

Conditions matter

Credit insurance policies typically come with conditions: credit limits on individual customers, reporting and notification requirements, and deadlines for action when an account falls overdue or a customer fails. Missing a notification window or exceeding an approved limit can reduce or invalidate a claim. Knowing your policy's obligations before a problem arises is the single biggest factor in a smooth claim.

Making a claim

When a covered loss looks likely, act promptly and follow the insurer's process:

• notify the insurer within any required timeframe;
• provide the invoices, statements, and contract;
• show evidence of the loss, such as the customer's insolvency;
• keep records of your own collection efforts.

Organised, timely documentation is what gets a claim paid without friction.

Cover and recovery together

Insurance and active recovery are complements, not substitutes. Many policies still expect you to mitigate the loss, and an insurer may pursue recovery after paying you. Keep collecting diligently and, where appropriate, use a professional referral alongside your claim, so you are not relying on cover alone to manage a serious exposure.

A note on advice

This is general information only, not legal, financial, or tax advice. Cover and claim requirements are set by your specific policy, so read it carefully and seek advice from your broker or insurer.