Trade Credit Insurance For Single Buyer Risk
FCIA’s Single Buyer Policies provide nonpayment coverage on one buyer with high concentration with either short or medium term repayment terms. Buyer limits are locked-in for the policy period and can be for domestic or international buyers. Our Single Buyer Policies help insureds to mitigate country risk exposures or larger buyer limit concentrations.
Who Should Apply?
Our target customers for Single Buyer Policies are companies looking to mitigate country risk exposures or larger buyer limit concentrations. Coverage is Non-cancelable and cannot unilaterally be reduced or withdrawn by the insurer for the term of the policy.
Coverage is available for companies that have at least $1 million or more in insurable domestic or international sales. Our minimum premiums on all single buyer policies are $20,000.
FCIA offers two options for Single Buyer Policies, Short and Medium Term:
Short Term Single Buyer Policy (Non-Cancelable Limits)
- Covers sales of all products and services with up to one year repayment terms
- Generally, covers up to 12 months of shipments or billings
- Insured percentage is usually up to 90%
- Coverage can be structured excess of a deductible for a lower price
- Full premium generally payable at policy inception
- The waiting period to file claim is generally 180 days from date of default
Medium Term Single Buyer Policy (Non-Cancelable Limits)
- Covers sales of capital goods with one to seven year repayment terms
- Regular payment amortizations generally required during the payment term
- Down payment may or may not be required
- Insured percentage usually is up to 90%
- Premium is charged on the declining exposure balance and is usually payable in full at policy inception.
- The waiting period to file claim is generally 180 days from date of default.
- The buyer must be the end-user of the product. Dealers/Distributors are usually not eligible buyers.