Trade credit insurance

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 (minimum requirement is a court judgement 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 nonpayment of trade debts following the debtor’s insolvency (receivership, liquidation, bankruptcy) and protracted default (the debtor isn’t formally insolvent, however a formal judgement 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
  • Gives you 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 Insurers 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 QBE Insurance, a recognised leader in this class of insurance.

Talk to our insurance specialists for more information or request a customised quote today!

Got a question?

Call the Master Builders Insurance team to discuss your insurance needs.

Phone 1300 13 13 26

*Note: Details of insurance coverage are a summary only of policy coverage. Insurance coverage is provided by QBE Insurance and we are pleased to provide full copies of policy documentation on request should you wish to review the complete terms of cover as these will apply in the event of any claims. Information contained herein is of a general nature and has not taken into account the particular insurance needs of any individual business or person. Terms and conditions apply – talk to Master Builders Insurance Services team for more information. Master Builders Insurance Services is a division of Queensland Master Builders Association. ABN 96 641 989 386. Australian Financial Services Licence 246834.

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