Trade Credit Insurance Insurance Coverage Checklist
The coverages a trade credit insurance business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for any business that sells on credit terms and wants to protect its accounts receivable. Priorities reflect typical exposure; confirm against your actual customers, terms, and financing.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Trade Credit Insurance (Whole Turnover or Key Account) | Pays when a customer goes bankrupt or doesn't pay — property and liability policies never cover unpaid invoices. | Core | |
| Insolvency Coverage | Covers buyers that file bankruptcy, go into receivership, or close owing you money. | Core | |
| Protracted Default Coverage | Covers buyers that simply stop paying past the policy's waiting period, without a formal bankruptcy. | Core | |
| Credit Limits on Top Customers | Not a policy you buy — confirm the insurer has approved limits that match what your largest buyers owe. | Core | |
| Export / Political Risk Coverage | Covers foreign buyers and losses from currency controls, war, or government action. | Prevalent | |
| Lender Loss Payee Endorsement | Assigns claim proceeds to your bank so receivables qualify for better financing. | Prevalent | |
| Pre-Delivery / Work-in-Progress Cover | Covers costs on custom orders when a buyer fails before shipment. | Situational | |
| Preference Payment Coverage | Covers payments a bankruptcy trustee forces you to return — often excluded unless added. | Situational | |
| Collections Services | Insurer-provided collection on past-due accounts, often required before a claim. | Situational | |
| Crime / Social Engineering | Covers payments diverted by fake buyer or vendor instructions — not covered by credit insurance. | Situational | |
| Business Income (Dependent Customer) | Covers income lost when a major customer's plant shuts down after a physical loss. | Situational | |
| Directors & Officers | Covers management for lender or investor claims after a large bad debt. | Situational |
The coverage gap most often missed
The gap most often missed with trade credit insurance is assuming every customer is covered. Insurers approve a credit limit for each buyer, and an invoice above that limit, or to a buyer the insurer declined or later reduced, is not covered. Policies also require you to report past-due accounts within set deadlines and to stop shipping, and missing either can void the claim. With U.S. bankruptcies at their highest since 2010, review approved limits against your largest balances every month, and calendar the policy's overdue reporting deadlines.
Send us the checklist and we'll review your trade credit insurance coverage line by line, then market it across multiple carriers that compete for your account.
Related: Trade Credit Insurance · Trade Credit Insurance Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a trade credit insurance business need?
The core coverages for a trade credit insurance business are Trade Credit Insurance (Whole Turnover or Key Account), Insolvency Coverage, Protracted Default Coverage, Credit Limits on Top Customers. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my trade credit insurance coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.