Non-payment

Comprehensive non-payment insurance protects against financial defaults of under a contractual payment obligation.

Short-term policies in general cover revolving receivables or financial obligations generated from one of a number of pre-agreed buyers or credit counterparties, with medium and long term policies (up to seven years) predominantly covering single risks with an agreed amortisation schedule.

In all cases, the Insured must retain part of the risk on non-payment on its books without any further hedging or additional insurance arrangements. This minimum self-retention would typically be 10% of any exposure, though it can be higher or lower. Alternatively, the insurer may provide 100% coverage excess of a deductible.