Trade credit insurance, also known as business credit insurance is purchased by business entities to protect their accounts receivable from loss due to the insolvency of the debtors; this form of credit insurance, is not available to, not will it benefit, private individuals. Premiums, or the costs for this form of insurance, are usually charged monthly and are calculated as a percentage of sales of that month or as a percentage of all outstanding receivables. Credit or trade insurance, which covers the payment risks of companies, and not private individuals, requires policy holders to place a credit limit on each of their buyers, for the sales to that buyer to be insured. The premium rate is usually low and reflects the average credit risk of the insured portfolio of buyers. Additionally, credit insurance can also cover single transactions or trade with only one buyer.
The FCIA Management Company, Inc. Underwrites and services the credit and political risks business of Great American Insurance Company and foreign Insurance Company. The FCIA provides credit insurance that will protect both export and domestic sales, while specialising in offering flexible coverage options against non payment risks whether resulting from commercial or political events. Coverage by the FCIA is available to businesses in the United States of America on their customers worldwide. The FCIA makes its products available exclusively through brokers and independent agents, any of whom are specialists in credit insurance and related financial products. The FCIA maintains a vision to deliver financial solutions that fulfil today’s needs and tomorrow’s dreams to be a trusted partner delivering long-term value to their customers, employees and investors.