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Protect your business against bad debts
If you’re selling goods or services on credit terms as a commercial trade contractor, you’re vulnerable to bad debt.
You’ve invested endless hours and hard-earned cash into your business. It’s your livelihood and we understand that no matter how small or large your business – the risks can be great and you need assurance to know you’ll be paid for your work.
Trade credit insurance protects your cash flow and business – giving you peace of mind that you’re covered if commercial customers fail to pay (the minimum requirement is a court judgment or insolvency).
Trade credit insurance* through Master Builders Insurance Services provides:
- Protection of your cash flow against commercial non-payment
- Independent assessment of your key debtors
- Early warning of non-payment risk, plus more.
Trade Credit Insurance - what you need to know
Who needs it?
If businesses sells goods or provide a service on credit terms, they are vulnerable to bad debts. This is where Trade Credit insurance can help.
Trade Credit insurance provides cover for the non-payment of trade debts following the debtor’s insolvency (receivership, liquidation, bankruptcy) and protracted default (the debtor isn’t formally insolvent, however, a formal judgment is the minimum required). It is designed to complement and support good credit management and help the business trade with confidence.
Benefits of being covered
Trade Credit Insurance:
- Protects your business from non-payment of bad debts
- Assists in the risk management strategy of your business
- Protects your bottom line profits
- Provides an independent assessment of your key debtors
- Helps to improve your credit management procedures, and
- Gives you the confidence to expand your business.
Trade credit insurance – the basics
The basics of Trade Credit Insurance:
- It covers only business to business transactions, such as contractors to builders
- Credit control procedures must be in place and monitored
- Generally the minimum cost including GST & Stamp Duty of Trade Credit insurance is in the $12,000 to $15,000 range, so it isn’t economically viable for everyone
- Claims are payable 30 days from the insurer's receipt of the confirmation of debt from the insolvency practitioner in charge of the failed debtor.
As Trade Credit Insurance is a highly specialised insurance product, we have teamed up with several insurers to provide market-leading coverage for this particular product.
Talk to our insurance specialists for more information or request a customised quote today!