In addition to a credit insurance contract, discover all the options you can subscribe to improve your contract.
Single buyer credit insurance
A policy designed to cover a single buyer or one transaction, which in many cases is the largest account on the ledger.
Because the risk is concentrated on one buyer, it is necessary to provide underwriters with a well-developed submission.
This policy is available for both short and medium terms.
Manufacturing risk option
This guarantee, also called credit insurance current order is an option to subscribe at the beginning of a credit insurance contract.
It intervenes to cover the risk of insolvency of a customer between taking the order and billing. Indeed, in a classic credit insurance contract, the insurer covers only the credit risk after the delivery of goods or performance of services. This option therefore complements a credit insurance policy to cover your customers upon ordering.
Why subscribe Manufacturing risk ?
– to cover against the risk of failure of your client, intervening during the period of production.
– your client is unable to convert or transfer currency to pay you.
– to cover on specific or custom order (some goods are produced for a particular customer or branded with its name) that are very difficult to resell.
– Your payment terms are dangerous from the moment of confirmation of the order and delivery of goods.
– You want to prevent the failure of your client in case the contract is cancel :
- Commercial risk : at the beginning of a collective insolvency proceedings.
- Natural disaster (natural disaster, floods) which stops the continuity of the production process or services.
- Political risk : change of regime or government, political unrest, import or export embargoes, government decisions that interrupt the manufacture or shipment of goods, war or related disturbances, including acts of political.
How to use this option ?
In the implementation of a specific contract amendment may trigger a premium surcharge.
- The premium will be based on the duration of the production process or a percentage of the amount of the premium.
- Possible for one or for all operations.
- The guarantee does not include the margin that the insured think affect on the sale.
- The insurance covers the costs invested between the contractual agreement of sale and end date shipments, deliveries of goods (purchase of raw materials, specific study and mounting production costs …)
Benefit of Manufacturing risk option
Insurance manufacturing risk is very useful for the manufacture of customized products for customers. Indeed, in case of customer insolvency, it becomes very difficult or even impossible to resell the goods.
With this option, your company is compensated for all the costs to produce the good (studies, product development, purchase of raw materials, manufacturing and production costs, delivery costs, etc …).
This insurance is also recommended in some specific sectors or for services where the time between order and delivery of the goods is very long.