What is Trade Credit Insurance and Why Do I Need It?

Trade Credit Insurance is also known as Nonpayment Insurance (NPI) or Accounts Receivable Insurance. If you are a company selling products or services on credit terms, or a financial institution financing those sales, you are providing trade credit. When you provide trade credit, nonpayment by your buyer or borrower is always a possibility. Our products protect your accounts receivable against losses resulting from that nonpayment.

A debtor's nonpayment can be caused by commercial events such as insolvency or protracted default. On international transactions, nonpayment can also result from the occurrence of disruptive political events such as wars, government interventions, or currency inconvertibility. All Great American Trade Credit Insurance policies provide comprehensive coverage against nonpayment risk arising from commercial and political events.

We offer export and domestic trade credit insurance products that facilitate global trade and related trade financing activities for corporate and financial institutions domiciled in Canada. To this we add our clear policy wordings and flexible approach to tailoring coverages to satisfy your specific needs.

Why Choose Great American?

Trade Credit Insurance or Nonpayment Insurance (NPI) can be a cost-effective mechanism for transferring risk. Premiums are generally charged either as a percentage of sales or as a per annum rate on limits. Premium rates are influenced by various factors including country risk, obligor risk, length of payment terms, and your loss experience.