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.