The coverage provided by Credit Insurance is very comprehensive, and enables companies to operate more competitively, without excessive risk to their receivables portfolio. However, as with any insurance contract, the insured is required to be attentive to situations characterized as ‘excluded risks’ for this type of policy, i.e., risks not covered by the plan.
Below, we specify the main risks excluded from Credit Insurance:
1. Sales to government entities - such operations are excluded from the coverage due to the impossibility of suing the debtor in the event of default;
2. Sales to natural persons – most insurers do not yet have efficient tools to assess the risks posed by natural persons, therefore, Credit Insurance coverage is solely applicable to transactions among companies (B2B);
3. Commercial disputes – In the case of commercial discussion or litigation, the insurers suspend cover until a judicial decision favorable to the insured is issued;
4. Losses arising from radioactive contamination, acts of war and natural disasters;
5. Losses arising from wrongful act, omission or fraud by the insured.
Finally, and most importantly:
6. Operations performed in breach of policy terms - the coverage provided by the Credit Insurance policy will not be effective if the insured does not fulfill the contractual conditions of the policy. For this reason, CredRisk Seguros conducts an active management role to ensure that the policy terms are met by its clients.
Our specialization guarantees the support required for the management of your policy. Contact us to find out how we can assist your company with the placement and management of a Credit Insurance policy.