WHAT IS CREDIT INSURANCE?
WHY BUY CREDIT INSURANCE?
WHAT CAN CREDIT INSURANCE DO FOR MY COMPANY?
It is an insurance product designed
to protect your company’s commer-
cial accounts receivable from the
devastating effects of a loss caused
. by the insolvency of one or more of
your key customers.
If just one of your major customers
fail; the damage can be devastating
to your firm. And, declaring
bankruptcy is no longer the last
resort it used to be. It has become
an accepted business strategy!
Credit Insurance can provide three
benefits: as a financial tool, a sales
product and as an insurance product.
MUST ALL
ACCOUNTS BE
INSURED?
IS THERE A
DEDUCTIBLE?
No! The Policy is flexible and can
be tailored to fit your specific needs.
It can cover your largest, key
accounts … those which would create
a catastrophic loss for your company
if they became insolvent. .. or, you
may choose to insure your entire
portfolio. You make the decision.
No! The F&D Policy features first–
dollar coverage on all named
accounts. Using a co-insurance for–
mat, the F&D pays a major percent-
age of your loss right away–as
opposed to asking you to first retain
a large deductible before any claim
payment is received.
HOW CAN CREDIT By facilitating financing of Accounts
—,AIITNS •.•• SrrUAnoR.•• FA •.• INNrr.AC~NE..–C“WiTIAO“”L“‘R“‘K~“R~e–ce~iv–a“‘–b“le–. –F–Cenaers recognize tllat:.-—H–O–W—M–U–C–H–W–I–L–L—P–re–rm–· u–ms usually cost a fraction of
the insolvency of a company‘s key IT COST? 1 of sales and are based on the
TOOL FOR MY customer may jeopardize repayment type of business, annual sales and
COMPANY? of a loan. Credit insurance reduces
loss experience.
this risk and may result in more
favorable lending terms.
HOW DOES CREDI”V
INSURANCE WORK
AS A SALES
PRODUCT?
HOW DOES CREDIT
INSURANCE WORK
AS AN INSURANCE
PRODUCT?
By allowing increased sales. Credit
Insurance may enable you to sell
more goods on credit terms while
substantially reducing the overall
risk of exposure to non-payment. It
also may enable you to take advan–
tage of peak and cyclical selling
periods and to safely expand into
new product lines or territories.
By providing Catastrophic Loss Pro-
tection. Generally, it is recognized
that 20 of a firm’s buyers account
for 80 of sales. Credit Insurance
protects against the catastrophic loss
resulting.from the insolvency of one .
of those key accounts.
HOW DOES CREDIT The F&D Policy is easy to under–
INSURANCE WORK? stand, implement and manage. F&D
will conduct an extensive credit
evaluation on each account submitted
.for coverage. Once underwritten, a
buyer is endorsed onto the Policy,
along with its approved credit limit.
There is no need to monitor account
ratings or complete monthly
reports=coverages are agreed upon
up–front.
WHAT TYPES OF
LOSSES ARE
COVERED?
The Policy covers many loss situa–
tions, ranging from bankruptcy to
uncollectible accounts.
WHY NOT
CONTINUE TO
“SELF-INSURE”?
Although some companies have
chosen to self–insure in the past,
doing so now may cost you more.
Under the 1986 Tax Reform Act,
business can no longer use the bad
debt reserve method of accounting to
determine tax deductions. On the
other hand, Credit Insurance pre–
miums are fully deductible, allowing
you to put the cash you now have in
reserves to better use.
WHY SHOULD I BUY The F&D domestic and export
FROM THE F&D? Credit Insurance Policies are backed
by Zurich Insurance Group and
NCM, both highly regarded in the
– — – ~ =irrdtrstry. –F&.f) …. is–also– an–authorized –~
broker for the EXIMBANK. We sell
WHERE CAN
I GET MORE
IN FORMATION?
our products and services through
independent agents, brokers and our
own sales personnel.
Evidence of our stability, operating .
performance and financial strength
can be found in the fact that the
F&D has earned an A (Excellent)
Rating from the A.M. Best Com- .
pany, independent analysts of the in–
surance industry.
Call (800) 822–3223 for the name of
the F&D Credit Insurance Specialist
nearest you.