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Types of Credit Insurance Products


This is the most traditional and popular type of credit insurance policy which covers the entire
business to business turnover of the insured company, which includes business transactions with
current buyers and future buyers.
All customers which make up the insurable turnover must have a credit limit. Credit limits are
established through the official approval process or under the discretionary limit.
Excess of Loss
Excess of Loss (XoL) policies are usually aimed at large or Multinational companies who have an
established credit management team. They offer protection for large losses and usually have large
discretionary limits which means less underwriting for the insurer and more freedom for the insured
to use their own credit management procedures.
These policies can be “ground up” or have an aggregate first loss which the insured must accept
prior to any claims being paid. There is usually scope for credit limits to be non-cancellable under an
Excess of Loss policy.
Major Buyer
A policy offering cover for an insureds main or largest buyers. Cover is offered for buyers above a
set exposure level. Underwriters must agree the credit limits.
Single Buyer
A policy offering cover for one buyer or one contract or a small selection of buyers.
Top Up Cover
Top-Up cover is available to increase the cover on a buyer where an insured is underinsured. The
number of insurers offering these policies is limited and the premium rates are higher than the rates
for other policies.
Non-Cancellable Cover
A policy where the credit limits are agreed and remain valid for the duration of the policy period and
cannot be cancelled by the insurer. There may be conditions which allow deactivation of cover if
certain events are triggered.

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