Multi-Buyer Credit Insurance

  • Coverage for a portfolio of buyers
  • For domestic-only, export-only or combined portfolios 
  • Traditionally covers only short-term payment obligations
  • Some insurers support up to three-year repayment terms on capital equipment 

The variations of multi-buyer credit insurance include:

Whole-Turnover - Insures a company’s (1) export, (2) domestic, or (3) combined open account sales.   Improved spread of risk and higher premium volume means clients may receive more capacity on high-risk credits than under a select-risk portfolio.

Select-Risk - Excludes lower-risk obligors or countries.  Though harder to obtain than whole turnover coverage, and usually more expensive, select-risk may be quoted aggressively if the  spread of risk is attractive.

Key Account - Insures only particular customers, e.g., customers with credit exposures above $500,000, the top ten customers, etc. 

Also see the underwriting philosophies used to underwrite multi-buyer policies: Ground-up, Excess of Loss, and Catastrophic.