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Commercial Insurance
Trade Credit Insurance
Key Features
End-to-End Security for Your Construction Projects
Coverage Highlights
Comprehensive cover for your projects
Financial Protection:
Reduces the impact of bad debts, ensuring a business can continue operating even if some customers fail to pay.
Cash Flow Management:
Provides a cushion for unpaid invoices, helping to maintain cash flow.
Risk Mitigation:
Helps businesses assess and manage credit risk more effectively.
Competitive Advantage:
Allows businesses to offer more flexible credit terms to attract customers and increase sales.
Access to Financing:
Can be a factor in securing loans and improving banking relationships.
Inclusions
What’s covered?Insolvency:
When a customer is unable to pay due to financial difficulties or going into liquidation.
Protracted Default:
When a customer fails to pay within a reasonable timeframe after the agreed-upon due date, even if they're not insolvent.
Political and Economic Risks:
This can include non-payment due to currency fluctuations, political instability, or trade restrictions in other countries.
Political Risk:
Non-payment resulting from political or climate-related events, currency restrictions, interruption of trade or expropriation.
Exclusions
What’s not covered?Contractual Obligations:
Failure to comply with contractual obligations or relevant laws.
Nuclear and Natural Disasters:
Losses due to nuclear origin or natural disasters.
War Between Major Powers:
War between the USA, Russia, France, China, and the UK.
Distribution Agreements:
Termination of distribution, franchise, or similar arrangements.
Licenses:
Loss of export or import licenses.
Non-Acceptance:
Failure of the buyer to accept delivery of goods not subject to a dispute.
Discretionary Limits:
Failure to set a discretionary limit in accordance with conditions.
Third-Party Transfers:
Transfer of payment obligations without prior agreement.
Exchange Rate Fluctuations:
Currency devaluations and exchange rate fluctuations.
Third Country Events:
Events occurring in a third country unless agreed otherwise.
Private Individuals:
Transactions with private individuals acting in a personal capacity.
Public Buyers:
Transactions with public buyers in the insured's own country and foreign public buyers.
Prepaid Transactions:
Transactions for which payment is received before despatch or provision.
Letters of Credit:
Transactions paid by confirmed and irrevocable letters of credit.
Extended Payment Terms:
Payment conditions more favorable to the buyer than the maximum terms of payment.
Exclusions
Read moreExcluded Countries:
Transactions with buyers in excluded countries.
Controlled Buyers:
Transactions with buyers over which the insured has significant control or vice versa.
Refused or Withdrawn Cover:
Transactions with buyers for whom cover has been refused or withdrawn.
State of Default:
Transactions with buyers in a state of default.
Late Payment Interest:
Interest for late payment or contractual/legal damages.
VAT:
Value-added tax unless agreed otherwise.
Real Estate:
Receivables from letting or leasing real estate.
Embargoed Entities:
Transactions with entities under embargo by the Indian Government, UN, or EU.
Protecting Your Businesses with Trade Credit Insurance
Trade Credit Insurance is a vital tool for businesses that sell on credit, protecting them against the risk of non-payment by buyers. It ensures financial stability and promotes business growth by mitigating credit risks. It is crucial for maintaining cash flow and safeguarding against potential losses, ensuring business stability and growth.
What is Trade Credit Insurance?
Trade Credit Insurance is essential for companies that sell goods or services on credit terms. This insurance is crucial for businesses as it safeguards their accounts receivable, ensuring they get paid even if a buyer defaults. Companies that extend credit to their customers, such as manufacturers, exporters, and wholesalers, benefit significantly from this insurance. It helps maintain cash flow, manage credit risks, and supports business growth by providing a safety net against potential losses due to buyer insolvency or delayed payments.
How Does Trade Credit Insurance Work?
Trade Credit Insurance works by covering the risk of non-payment by buyers. When a business purchases a policy, it provides details about its buyers and credit terms. The insurer assesses the risk and sets a premium. If a buyer fails to pay within the agreed terms, the business can file a claim. For example, if a manufacturer sells goods worth $50,000 on credit and the buyer defaults, the manufacturer can claim the insured amount, ensuring they don't suffer a financial loss. The insurer then compensates the business, typically covering a significant portion of the unpaid invoice, thus protecting the business's cash flow and financial stability.
Benefits You Deserve
All Risk
Covers all risk in a single policy unless specifically excluded
Broad Scope of Cover
Coverage provided is in its widest form for a Principal & Contractor
Tailor-made
Can be customized to cover interest of various stakeholders
Key Benefits of Trade Credit Insurance
- Risk Mitigation: Protects against buyer insolvency and payment defaults.
- Cash Flow Protection: Ensures steady cash flow by covering unpaid invoices.
- Better Credit Management: Helps manage and assess credit risks effectively.
- Business Growth: Enables businesses to extend credit confidently, fostering growth.
Who Should Opt for Trade Credit Insurance?
Trade Credit Insurance is ideal for manufacturers, exporters, wholesalers, and any business that extends credit to its customers. For instance, a manufacturer selling machinery on credit, an exporter shipping goods overseas, or a wholesaler supplying products to retailers can all benefit from this insurance. It is particularly useful for sectors with high credit sales and those dealing with international buyers, where the risk of non-payment is higher.
Download Policy Document
Get instant access to your policy details with a single click.
Coverage Offered Under Trade Credit Insurance
Trade Credit Insurance typically covers risks such as buyer insolvency, protracted default, and political risks that may prevent payment. For example, if a buyer goes bankrupt or delays payment beyond the agreed terms, the insurance will cover the loss. Political risks, such as government actions or political instability in the buyer's country, are also covered. Common exclusions include disputes over the quality of goods or services, pre-existing overdue accounts, and sales to government entities.
How to Buy Trade Credit Insurance?
To buy Trade Credit Insurance, businesses need to determine their eligibility, gather necessary documentation, and undergo underwriting. The premium is calculated based on factors like the buyer's creditworthiness and the amount of credit extended. Businesses can purchase policies online through the insurer's website or offline by contacting an insurance agent. The process involves submitting financial statements, buyer details, and credit terms for assessment.
Why Bajaj General?
Buy Now
Why Choose Bajaj General for Trade Credit Insurance?
Bajaj General offers comprehensive Trade Credit Insurance with several unique selling points. Our policies provide extensive coverage, competitive premiums, and a hassle-free claim process. We have a dedicated team of experts to assist with risk assessment and credit management. Compared to competitors, Bajaj General stands out with its robust customer support, tailored solutions, and a strong track record of prompt claim settlements, ensuring your business remains financially secure.
Step-by-Step Guide
To help you navigate your insurance journey
How to Buy
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1
Visit the Bajaj General Insurance website
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2
Fill in the lead generation form with accurate details
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3
Get quote, make payment and receive the policy documents
How to Renew
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1
Contact the Policy Issuing Office
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2
Review expiring policy and share necessary details
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3
Receive renewal quote
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4
Make renewal payment
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5
Receive the renewed policy documents via email
How to Claim
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1
Contact us through our customer service touchpoints
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2
Submit the claim form along with the necessary documents
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Provide details of the incident and any supporting evidence
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4
Cooperate with the claims investigation process
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5
Receive the claim settlement as per the policy terms
Know More
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For any further queries, please reach out to us
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Toll Free : For Sales :1800-209-0144
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Email ID: careforyou@bajajgeneral.com
Trade Credit Insurance Claim Process
Filing a claim under Trade Credit Insurance involves several steps.
1. Notify the insurer of the non-payment.
2. Submit required documents, such as invoices, proof of delivery, and communication with the buyer.
3. The insurer will review the claim, and if approved, compensation is provided within a specified timeline.
4. The settlement process ensures that businesses receive the insured amount, protecting them from financial losses due to buyer defaults.
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Instant Generation of Risk Report
It helps Provide Risk Recommendations, Risk Quality Rating (RQR), Peer Comparison & GAP Analysis for the client
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What Our Customers Say
Hassle-Free Policy Issuance
I recently purchased an Engineering Insurance policy from Bajaj General for my construction business. The entire process was seamless, and the documentation was minimal.
Rohit Mehta
Mumbai
10th Dec 2024
Comprehensive Coverage
The policy covers everything from contractor risks to equipment breakdowns. This is exactly what my business needed to stay protected from unexpected damages.
Sandeep Yadav
Delhi
11th Jul 2025
Excellent Customer Support
I had a lot of queries before purchasing the policy, and the customer support team patiently explained every detail. Their guidance made it easy for me to choose the right plan.
Karthik Iyer
Chennai
25th Sep 2024
Quick and Transparent Claims
My firm suffered damage to some expensive machinery, and Bajaj General settled my claim in record time. The process was smooth, with no hidden conditions.
Vikram Rajput
Ahmedabad
17th Aug 2024
Ideal for Contractors
As a contractor, I needed insurance that covers accidental damages at the project site. This policy gives me peace of mind, knowing my business is secure.
Manish Verma
Pune
26th Jul 2025
Great for Infrastructure Projects
I work in infrastructure development, and this insurance has been a lifesaver. It provides extensive coverage for machinery, third-party liabilities, and worksite accidents."
Preeti Nair
Bengaluru
18th Apr 2025
Covers Third-Party Liability
What impressed me the most is that this policy also includes third-party liability, which is crucial in my line of work. This helps prevent financial losses due to unexpected mishaps.
Arvind Gupta
Lucknow
10th Jan 2024
FAQ's
What is trade credit insurance, and why is it important?
Trade Credit Insurance protects businesses against the risk of non-payment by buyers. It is important because it ensures that businesses get paid for their goods or services, even if the buyer defaults, thus safeguarding cash flow and financial stability.
Who can benefit from trade credit insurance?
Manufacturers, exporters, wholesalers, and any business that extends credit to its customers can benefit from Trade Credit Insurance. It is particularly useful for businesses with high credit sales and those dealing with international buyers.
Does trade credit insurance cover all types of buyers?
Trade Credit Insurance typically covers most commercial buyers, but there may be exclusions for government entities or buyers with pre-existing overdue accounts. It is essential to review the policy terms to understand the specific coverage.
How does trade credit insurance protect my business from payment defaults?
Trade Credit Insurance protects your business by covering unpaid invoices if a buyer defaults. In case of non-payment, you can file a claim, and the insurer compensates you for the insured amount, ensuring your cash flow remains unaffected.
Is trade credit insurance applicable for both domestic and international trade?
Yes, Trade Credit Insurance is applicable for both domestic and international trade. It covers risks associated with non-payment by buyers, whether they are located within the same country or overseas.
What types of trade credit insurance policies are available?
There are various types of Trade Credit Insurance policies, including whole turnover policies, which cover all sales, and specific account policies, which cover selected buyers. Policies can be tailored to meet the specific needs of a business.
How is the premium for trade credit insurance calculated?
The premium for Trade Credit Insurance is calculated based on factors such as the buyer's creditworthiness, the amount of credit extended, the industry sector, and the business's historical credit performance.
Are there any specific eligibility criteria to buy a trade credit insurance policy?
Eligibility criteria for Trade Credit Insurance may include the business's financial stability, credit management practices, and the creditworthiness of its buyers. Insurers may require financial statements and buyer details for assessment.
Can I customize the coverage based on my business needs?
Yes, Trade Credit Insurance policies can be customized to suit your business needs. You can choose coverage limits, specific buyers to insure, and additional options like political risk coverage.
What risks are typically excluded from trade credit insurance policies?
Common exclusions in Trade Credit Insurance policies include disputes over the quality of goods or services, pre-existing overdue accounts, sales to government entities, and risks related to fraud or illegal activities.
How do I file a claim under trade credit insurance?
To file a claim, notify the insurer of the non-payment, submit required documents such as invoices and proof of delivery, and provide communication records with the buyer. The insurer will review the claim and process the settlement.
What documents are required to submit a claim?
Documents required to submit a claim typically include invoices, proof of delivery, communication records with the buyer, and any other relevant documentation that supports the claim of non-payment.
How long does the claim settlement process usually take?
The claim settlement process usually takes a few weeks to a few months, depending on the complexity of the claim and the documentation provided. Insurers aim to process claims promptly to ensure timely compensation.
What happens if the buyer disputes the claim?
If the buyer disputes the claim, the insurer will investigate the dispute. The resolution may involve verifying the validity of the claim, assessing the buyer's arguments, and determining the appropriate course of action.
Can I claim for partial payment defaults or only full defaults?
You can claim for both partial and full payment defaults. If a buyer makes a partial payment but fails to pay the remaining amount, you can file a claim for the unpaid portion, subject to the policy terms.
When should I renew my trade credit insurance policy?
You should renew your Trade Credit Insurance policy before it expires to ensure continuous coverage. It is advisable to start the renewal process a few weeks in advance to avoid any gaps in protection.
Is the renewal process different from buying a new policy?
The renewal process is generally simpler than buying a new policy. It involves reviewing the existing coverage, updating any changes in your business or buyer information, and agreeing on the new premium.
Will my premium change at the time of renewal?
The premium may change at the time of renewal based on factors such as changes in your business's credit risk profile, claims history, and any updates to the coverage terms.
What happens if I delay renewing my trade credit insurance?
If you delay renewing your Trade Credit Insurance, there may be a gap in coverage, leaving your business exposed to credit risks. It is crucial to renew on time to maintain continuous protection.
Can I modify the coverage during renewal?
Yes, you can modify the coverage during renewal. You can adjust coverage limits, add or remove buyers, and include additional options based on your current business needs and risk assessment.
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