This is the most common type of credit insurance policy and it covers all (or most) of a business through a comprehensive policy based on its turnover – protecting a business from non-payment from all current and future customers over a typical 12 month period.

It allows a company to offer its customers credit up to a fixed limit, with an overall premium priced on its annual turnover. Businesses can choose a fixed policy with a set premium price, or they can declare their turnover both at the start of the policy and at its end to receive a rebate, if their turnover was less than initially forecast.

Unlike a whole turnover policy, major buyer cover allows you to insure your business against a named customer failing to pay. As a rule, this type of cover allows you to name up to 10 key customers, which are likely to be the customers who would cause the most impact through non-payment.

Also known as a key accounts or named buyer policy, this type of credit insurance is also useful for covering customers with a poor credit rating or who might be likely to go bust, which could leave your own business vulnerable. You can select the limit level, but you remain completely responsible for all customers not named on the policy.

Also known as specific risk insurance or a single buyer policy, this type of cover protects a business from non-payment from a single customer or contract. The price of the premium is based on the size of the turnover of the customer or value of the contract, and it’s often taken out by companies who rely on a main byer for the majority of their sales.

This type of credit insurance can be requested by funders or investors who want the business to buy protection against a primary customer. Often this is seen in public companies but it can cover any company with a good quality of credit.

This type of trade credit cover safeguards a business from their overseas customers failing to pay. Businesses can take out a policy that covers purely their exports or their domestic trade, but most policies will accommodate both.

As such, export trade credit insurance is often integrated into a standard policy for businesses who trade internationally, and it can offer a breadth of protections as well as standard cover for insolvency and defaulting customers. For example, businesses can take out cover for anything from political risk to currency shortages to social and economic instability to government intervention.