Image of Credit Insurance for Subsidiaries of Global Companies

Credit Insurance for Subsidiaries of Global Companies

New Berne Union Report Cites Growing Demand for Insuring Sales in USA

Trade credit insurance protects accounts receivable against nonpayment risks. If a customer covered under a credit insurance policy defaults on paying an insured supplier’s invoice, and the debt can’t be collected, a claim can be filed and the loss will be indemnified.

Historically credit insurance has been used in other countries more extensively than in the United States but now we’re starting to catch up. One of the main reasons is demand from U.S. subsidiaries of global companies, especially with the outbreak of the pandemic and resulting economic downturn.

When overseas parent companies buy credit insurance to protect their receivables, they expect their affiliates in the USA to do the same. Less familiar with the U.S. market—and its exigencies, politics, etc.—companies in other countries may be truly concerned about the risks of not getting paid here.

The latest Export Credit Insurance Industry Report by the Berne Union [click here to download] says “Europe remains by far the largest destination market for ST-insured exports, with 50% of total, but the largest growth in new business was recorded in North America,” a statistic which has only increased in COVID-time.

When you purchase trade credit insurance, sales to each of your insurable customers get underwritten for a specific credit limit. In the event of a covered default, you can be indemnified for up to 90% of that amount. Once your policy goes into effect, new customers can be submitted for underwriting and addition to the coverage at any time.

The cost of trade credit insurance is low, typically a fraction of one percent of your insurable sales volume. Whether or not you pass on this incremental expense to your customers, the price of credit insurance is insignificant compared to the coverage’s benefits.

Trade credit insurance does more than mitigate nonpayment risks. It’s a sales tool that can help you grow your business by confidently extending competitive payment terms. And it’s a financing tool that will make your receivables more attractive to banks and other lenders.

Meridian Finance Group has specialized in brokering trade credit insurance for more than 25 years. With offices worldwide, we work with every insurer in the market. Credit insurance policies are structured differently from other kinds of insurance, so beyond negotiating the best coverage for our clients at the lowest cost Meridian provides comprehensive technical support for every policy we broker . . . including in the event of claims.

For more information about trade credit insurance and Meridian’s other services, call us at 310.260.2130, visit, or email us at

  • This field is for validation purposes and should be left unchanged.