How should you choose a credit insurance broker?

Credit insurance is a complex landscape, so it makes sense to have a broker on hand to help you navigate it. But when it comes to credit insurance brokers, are they all the same - or are some better than others? More importantly, how should you as a business choose the right broker for your needs and budget? Here are three main areas to consider:

1. Risk mitigation

A good credit insurance broker should have specialised knowledge in the area of risk mitigation: they should be able to assess your risk appetite and then offer the most suitable insurance structure for it. They should also have experience in your industry so that they can know what fair pricing looks like so they can get you the best deal possible for your policy. Also, if your chosen credit insurance policy no longer suits for whatever reason, they should have access to other alternative solutions - and then be able to recommend the right one to you.

2. Compliance

The broker you use should have infrastructure behind them in terms of systems, policies and procedures and staff who can help ensure that your insurance provider is abiding by their policy terms and conditions. Having the right systems in place also means a broker can give you insights into your industry, including alerting you when there is a trend of marked deterioration in payment for certain debtors. Finally, a broker should be proactive in addressing trading in excess of limits, and should be able to suggest changes to policy structure or event underwriter that will help you as the policy holder save money.

3. Paying claims

Perhaps most importantly, your credit insurance broker should have an efficient claims department on hand so that your claim is submitted properly and that you get a full payout on time. They should also have knowledge and experience in claims processes of each insurer, which can also help claims to be dealt with correctly and promptly, and that you get the maximum payout you’re eligible for.

A reliable insurance broker can make a big difference in your business's finances, potentially saving you money and boosting your revenue, and ideally achieving both. When it comes to saving money, selecting a broker who handles all the tasks mentioned above can greatly reduce the impact of significant bad debts on your business. On the revenue side, a good broker not only helps you get the most out of your insurance coverage but also helps you to identify trustworthy customers and bring them on board efficiently. This, ultimately, can help increase sales for your business.