Trade Credit

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Trade Credit Insurance is a straightforward, cost effective way to ensure you get paid for goods and services you supply.

In an increasingly difficult economic climate Trade Credit insurance protects you from the risk of bad debts when your clients become insolvent. This enables you to protect your cash flow and profitability, and gives you the confidence to offer large lines of credit to your clients.

Lockton are an accredited specialist broker with long standing insurer relationships both in the local market and internationally. This helps to ensure Lockton successfully structure and place bespoke and cost effective credit programs with the must suitable insurer for a client base ranging from $10m to $1bn in revenues.

Types of cover include:

  • Whole of Turnover
  • Excess of Loss
  • Major Buyer
  • Single Risk
  • SME

Benefits of Cover Include

Cash Flow Protection

20% of companies that fail do so as a direct result of suffering a bad debt. Trade Credit Insurance protects your cash flow with a 90% payment of any insured debt following a client’s insolvency.

Profit Protection

Under a trade credit program hard earned profits are protected from the destructive impact of a bad debt. Assuming a 5% net profit margin, a $100,000 bad debt equates to $2,000,000 in lost sales.


The underwriters have sophisticated commercial databases and employ a team of credit analysts to monitor your exposures. The policy therefore becomes a credit management tool that can help you to avoid losses altogether.


A policy can enable you to trade through a difficult economic cycle with the confidence to take on new customers and provide increased credit lines to existing clients knowing your outstanding’s are insured.

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