Trade Credit Insurance NZ

Protect your business against customer non-payment

What is Trade Credit Insurance?

Trade credit insurance protects your business against financial losses when customers fail to pay their invoices. If a customer becomes insolvent or defaults on payment, trade credit insurance covers the loss, ensuring your cash flow remains protected.

This cover is particularly valuable for businesses that extend credit terms to customers, as it provides peace of mind and financial protection against unexpected bad debts.

What Does It Cover?

  • Non-payment by customers
  • Insolvency of buyers
  • Protracted default
  • Political risks (optional)
  • Reimbursement of bad debts
  • Credit management support

Who Needs Trade Credit Insurance?

Trade credit insurance is essential for:

  • Businesses with trade credit terms
  • Exporters
  • Wholesalers and distributors
  • Manufacturers selling to credit customers

Typical Costs

Trade credit insurance is typically priced as a percentage of credit extended. Typical rates start from:

  • Domestic trade: From 0.5% of credit
  • Export trade: From 1% of credit
  • High-risk industries: Higher rates apply

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Typical Coverage

$50K - $5M

From

0.5%of credit extended

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