Questions

Lock1. What is credit insurance?
Credit insurance or accounts receivable insurance protects your company against risks of non-payment by your buyers in Canada, United States and overseas.
Lock2. Why insure accounts receivable?
Accounts receivable are amongst the most important assets of a balance sheet. Receivables must be protected at the same level as other assets. With a credit insurance contract, you ensure your company's financial stability by protecting your working capital and your profits.
Lock3. How much does credit insurance cost?
The cost of credit insurance varies depending on various criteria:
  • Concentration of risk
  • Quality of debtors
  • Credit losses in previous 3 years
  • Clients level of risk retention (deductible amount and co-insurance)
  • Special endorsements
  • Sector of activity
  • Countries to insure
  • Terms of payment on invoices (net 30 days to net 180 days, special terms for certain debtors, dating, progressive invoicing)
  • Annual sales

Generally, rates vary between 0.1% and 0.5% of your estimated annual sales.

Lock4. Is it necessary to insure all our sales?
No, not necessarily.

Policies may cover different geographical areas, accounts selected by size of exposure or a particular line of a company with multiple products. It is important to remember:
  • The better the spread of risk, the better the rate
  • You are buying protection against unexpected losses. The more restrictive your selection, the higher the chance a surprise loss will not be covered
Lock5. What are the benefits of credit insurance?
  • More sales : Insurance allows you to develop new clients by offering them more advantageous sales terms, accepting new contracts or larger orders
  • Better financing : Insurance allows your financial institution to offer a better margining rate for your accounts receivable
  • Less risks : Accounts receivable insurance covers up to 90% of losses caused by bankruptcy or non-payment by one of your buyers
  • Additional information : The insurer assists your credit department by providing a credit assessment of your buyers
Lock6. What does credit insurance cover?
Credit insurance covers various insolvency conditions as well as non-payment of domestic and/or international receivables for your products and services.
Lock7. Is it possible to add accounts during the year and increase existing limits?
Thanks to the online platforms at your disposal, it is very easy for you to manage your client portfolio by adding new limits or by increasing existing limits. If the answer is not generated automatically, your request will usually be processed within 24 to 48 hours.
Lock8. What are the payment delays for claims?
Generally, claims are paid within 60 days following the submission of the necessary documentation.
Lock9. Why choose Noordberg et Associés Inc.?
With 20 years of experience, our comprehensive knowledge of the market, the philosophy, credit insurance contracts and related products of each insurer, our brokerage firm ensures rapid and effective responses to all your questions by offering the best products available on the market.
Lock10. Is the premium higher if we choose your firm rather that doing business directly with an insurer?
Not at all.

Our goal is to obtain the best products for our clients. In addition, since we specialize in credit insurance, our knowledge of the market rates, specific endorsement for your industry and special terms that relate to your credit procedures ensure that the quotes received are competitive and reasonable.
Lock11. How is a brokerage firm like Noordberg et Associés Inc. paid?
Payment for brokerage firms such as ours is based on commissions. Once a premium is received, the insurer pays the firm. It is important to note that we receive the same commission rate from all insurers. If the procedure of the terms negotiation for renewal is done by Noordberg and associates and further given to another broker, consultation fees will be charged to client.
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