A reinsurer sees the ledger from a particular altitude. Across the treaties and facultative risks that pass through our underwriting desk, one exposure appears on nearly every cedent’s balance sheet and almost nobody’s insurance program, . . . the accounts receivable. Businesses insure their buildings, their fleets, their inventory and their officers — then leave 20 to 40 percent of their current assets, the money their customers owe them, entirely exposed to the failure of those customers.
That gap is why we built our newest property, TradeCreditPolicy.com, dedicated exclusively to trade credit insurance — the coverage that pays a seller when a buyer becomes insolvent or simply stops paying an undisputed invoice.
Why now? Global business insolvencies are rising for the fifth consecutive year, and the arithmetic of an uninsured receivable is unforgiving: a company operating on an 8% net margin that writes off a $400,000 account must generate $5mn in replacement sales merely to recover the lost profit. Trade credit insurance converts that open, concentrated exposure into a budgeted premium — typically a fraction of one percent of insured sales — while strengthening the borrowing base with receivables lenders and adding the insurer’s buyer intelligence to the seller’s own credit function. The site’s guide to what trade credit insurance costs lays out the rating factors plainly, because we believe an informed insured is a better risk.
Why TCP? Trade credit underwriting is, at bottom, the same discipline that governs surety and reinsurance: the patient analysis of financial statements — liquidity, leverage, cash flow, the quality of the receivables themselves. It is the discipline this group has practiced for more than three decades. Through Surety One, Inc., our exclusive managing general agency for the Western Hemisphere and wholly-owned firm of Janus Assurance Re, the program underwrites every principal structure: whole turnover, multi-buyer, key account, single buyer, excess of loss, and export credit forms carrying political risk perils.
Why the Americas? Our service is global, but our forté is the corridor we inhabit. The reconfiguration of supply chains toward Mexico, Central America and the Caribbean is routing trade through precisely the markets where buyers carry no public credit rating — and where underwriting them requires native fluency, not translation. From offices in Raleigh, San Juan and Santo Domingo, the desk underwrites, documents and services claims in English and Spanish alike; the site itself publishes its full educational library en español.
If your company sells business-to-business on open account — particularly if a handful of buyers dominate your ledger, your lender excludes foreign receivables from your borrowing base, or a single insolvency would erase a year of margin — the education, the pricing guidance and the application for coverage are all at TradeCreditPolicy.com. Inquiries reach the underwriting desk directly at Underwriting@SuretyOne.com.
