Debtsource and Hollard introduce new selected debtor insurance product

The credit management solution specialist Debtsource announced a new selected debtor insurance offering brokered for Hollard Trade Credit, which will be underwritten by Hollard Insurance.

After extensive investigation into the current trade credit insurance market, Debtsource and Hollard have teamed up to offer a new product that gives clients the choice of insuring individual trade debtors, rather than only selecting comprehensive cover. The new product intends to minimise the risks resulting from non-payment when businesses extend credit to each other by way of goods sold or services rendered.

Premiums will now be based on the risk grading of the debtor, rather than on prior claims or perceived industry risk. In addition to this, premiums will reflect the approved credit limit, meaning companies can decide on how much cover they want to buy with no punitive clauses for trading over the insured limit.

Debtsource will be marketing this solution as an intermediary alongside its other trade credit insurance partners, giving clients the option to have their portfolio comprehensively insured, or select which specific debtors they wish to cover. The cover is available based on a Debtsource credit limit review, with ultimate approval from Hollard Trade Credit – part of the Hollard specialist risk team.

“It combines effective credit risk management tools with risk transfer via insurance, meaning that many of the obstacles facing clients in managing their trade debtor insurance policy have been removed,” says Frank Knight, chief executive of Debtsource.

Apart from being able to select which debtors they need covered, clients are provided with complete assistance by Debtsource on any aspect of their insured or uninsured debt. This includes help with credit documentation, debtor profiling, obtaining additional securities, full support on disputed debt, and end-to-end management of non-paying accounts.

“This solution will be perfect for anyone who is not an expert at managing the complexities of trade credit insurance, including those businesses needing a more complete risk mitigation and risk transfer solution,” says Knight.