Credit insurance

Credit insurance is a product which main aim is to protect the Client against unplanned losses due to non-payment from the part of the contractors. Compensation is paid by the insurer in the following cases:

  • legal insolvency of the recipient (among others bankruptcy or systemic liquidation )
  • chronic delays in payment for debts (the debtor continues to operate, but the debt collection activities are ineffective)

Just a few years ago in Poland receivables insurance policy were concluded by companies which activities had high risk of non-payment of dues. Currently, more often the credit insurance of a permanent is a part of a receivables management policy. As a result, different insurance policies are implemented into the Polish market such as:

  • The insurance of entire customers portfolio – the most popular type of insurance covering the scope of protection for all customers of the Client
  • The insurance of the selected contractors – in this scenario, it is possible to cover a single or a few selected customers. The product can function as a principal security or as an additional policy, if the policy is not the main possibility of granting credit limits
  • Top Up Cover – so called insurance of the missing credit limits in the principal security. The product can be offered both by the same, as well as other insurer (read more on the blog)
  • Insurance based on the customer procedures – policy dedicated to the large companies that have their own extensive receivables management system (read more on the blog)

How do we help?

  • we get to know the specifics of our clients due to various factors (including the nature of the business, industry, customers portfolio structure, processes procedures : sales, debt collection, controlling, past experience with insurers)
  • we obtain offers from insurers, which we analyze in the context of the identified needs, compare and negotiate the necessary records and parameters
  • we conduct trainings for Clients consisting of the operating principles of insurance and assist in the operation of the product throughout the duration of the contract

Insurance guarantee

Insurance guarantee is the commitment of the Insurer (Guarantor) to pay the beneficiary a specific amount of money, in the case of an event specified in the warranty. Insurance guarantee unlike insurance is usually paid unconditionally and irrevocable and it is not subjected to the additional conditions by the debtor or beneficiary of the guarantee.

Insurance guarantees are useful for companies participating in tenders regularly and companies seeking to new investment contracts. That is why the guarantee of insurance is mostly used by companies operating in the construction and service with bigger investment.

The most common forms of guarantee are:

  • guarantee deposit
  • performance bond guarantee
  • warranty for defects
  • advance payment refund guarantee

How do we help?

We negotiate the best conditions for price guarantee subscription due to the nature of the hedged contracts. We also assist in completing the necessary documentation and in evaluating the financial condition of the customer by the Insurer.

Blog CRB

Is insurer smarter than the Customer? Original approach to receivables insurance

In the classical approach to the credit insurance which specialized insurers offer, monitoring insolvency risk is under the control of the insurer. He gives the credit limits on key customers, decide on the amount and the possible changes in the course of the policy and the amicable recovery is performed in the case of non-payment…. View Article

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The question from the Customer: I have a policy – should I close a debt management department?

Several years ago, no one asked this question because receivables management departments were mostly the domain of large international companies. In the MSP sector, elements of the debt management functioned, because decisions concerning contractors were made in majority by an Owner, the payments were made by an Accountant and unscrupulous debtors were handed over to… View Article

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Who is automatic credit insurance policy for?

Credit insurance in Poland is a product that is constantly evolving. Many large and medium-sized enterprises insure receivables for years, or at least use the credit management tools such as credit reports, monitoring and recovery of receivables offered by external specialized companies. Meanwhile, in the current changeable economic reality credit insurance is an important product… View Article

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Is lack of credit limits additional risk for the Insurer?

Insurance policy are in large part based on an assessment of the counterparties portfolio by the insurer. It is also choosing which recipient is and in what time it can be insured for a specific amount of credit limits. Although in most insurance policies there is an automatic insurance without the control of the insurer,… View Article

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