It's not just about the cost to insure; it's also about the mayhem you must deal with when the revenue from sales made is blocked and perhaps severely reduced. Consider the story of a major high-end clothing retailer that unexpectedly closed its Canadian operations in October 2023. Many suppliers found themselves caught off guard, facing substantial losses. However, the shock was less intense for those with Trade Credit insurance because they could protect a large portion, up to 90%, of their account receivables against non-payment.
What stops businesses from sourcing trade credit coverage in the wake of such events? The two most common reasons are often cited as the insurance's perceived high cost and complexity. However, a deeper dive into these concerns reveals a different reality.
Bryan Hughes, Business Development Manager at Cowan Insurance Group, sheds light on the matter. It's about being strategic and careful with your expenses. It is better to know the risks and understand your tolerance to losses BEFORE an event, not after. He recalls how Cowan assisted clients impacted by this retailer's closure, emphasizing the importance of early engagement months before a buyer stops payment or can't pay. "The secret sauce is to come in early," he remarks. "We will assess your portfolio and provide transparent guidance tailored to your needs. Confidentiality is paramount, as we adhere to the highest standards of professionalism."
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Is cost the barrier? Bryan says the cost typically ranges from 0.5% to 1.5% per $100 Invoice Amount. This investment pales compared to the potential losses incurred from non-payment. And what about complexity? Bryan coaches clients to master understanding how an insurance policy helps a company lower the risk of non-payment of account receivables. A good broker should take the time to understand a customer's needs so that they can offer the best value solutions available in the market. One more—a good broker supports their client when they have policy questions regarding new buyers, higher credit limits, or the submission of a claim throughout the policy term. "While insuring tangible assets like a house or car seems intuitive, insuring against non-payment might seem abstract. But the benefits extend beyond financial security; they resonate with your stakeholders—bankers, accountants, and shareholders— all of whom will support your foresight."
Confidence and comprehension are crucial drivers behind opting for Trade Credit insurance. This is where engaging a reputable broker like Cowan Insurance Group becomes indispensable. With over six decades of industry track record, Cowan stands out as a beacon of reliability and expertise.
Why choose Cowan for your Trade Credit Insurance needs?
Cowan remains fiercely independent and accountable solely to its clients as a Canadian-owned and privately-held brokerage and consulting firm. With an unwavering focus on long-term growth and professional relationships, Cowan prides itself on delivering personalized service tailored to each client's unique requirements.
The Cowan Trade Credit Team boasts over 60 years of combined experience, providing invaluable insights into the complexities of credit risk management. Their deep understanding of Trade Credit enables them to empower clients to navigate challenges and seize opportunities confidently. The company's nationwide presence ensures that clients receive localized support wherever they do business in Canada. With strong relationships with leading trade carriers, Cowan ensures clients receive optimal coverage terms, competitive pricing, and dependable claims experiences.
In conclusion, Trade Credit Insurance isn't just about mitigating financial risks; it's about safeguarding the future of your business. With Cowan Insurance Group as your partner, you can confidently navigate the unpredictable waters of trade.
Contact a Cowan Trade Credit specialist today and fortify your business against uncertainties.
