When the primary insurer provides insufficient limit on a debtor, a third party may provide additional - temporary or permanent - cover. Usually, this third party takes over the terms of the primary credit insurance.
Several forms of top-up cover are possible.
1. The primary insurer gives the option, under certain conditions, to still issue a top-up limit on top of the limit already issued by the credit insurer itself. In most cases, this is a maximum doubling of the primary limit. The additional premium is fixed and the limit is issued for a certain minimum period.
The products of the 3 largest insurers are:
- Atradius - CapR
- Allianz Trade - Cap and Cap+
- Coface - Topliner.
2. There are options to take out a policy with an external top-up insurer. Several options are conceivable here:
- Insurers offering cover - fully automatic - by following the primary insurer in case of limit shortfalls within your existing policy and doubling your current credit limits
- Insurers allowing more than double the primary limit
- Insurers issuing cover on debtors that the primary insurer refuses to issue, so-called 0-limits
- Insurers that accept Single Risks or can take a basket of debtors under cover.
Want to know more about credit insurance or any of the above customised solutions? Then get in touch.
