To help manage your accounts we provide web-based access for both you as the broker and your clients to policy information and documents, buyer limits and pending applications, plus premiums and claims detail. We also make this information available to lenders named as loss payees when the insured authorizes the lender's access.
- View your single or multibuyer policies
- Review current coverage, or view pending Buyer Credit Limits applications
- Review Discretionary Credit Limits (DCL) amounts and information pertaining to each policy
- Review eligible countries and country limit (if limits apply)
- View status of pending claims, or review claims history up to the last five years
- Submit a claim notice or an overdue report
In addition you can:
- Access FCIA's marketing materials and product fact sheets on different policy types (Forms)
- Access FCIA policy texts and features (Forms)
- Review our Major Country Developments update for the last six months (intelligence)
Note: Any time there is an online submission via the secure FCIA website to FCIA, an automated email notification will be sent to the preparer, policy contact, and the broker of record.
Loss payees
Financial institutions, named as loss payee in the policy, can also view information on these policies. Access requires written authorization to FCIA by the insured.
Access requires an active policy, user ID and password. Email us today at [email protected] to receive your user ID and password or to reset your password.
FCIA publishes a monthly paper, FCIA Major Country Developments. It offers economic and political intelligence compiled and interpreted by Byron Shoulton, FCIA Senior Global Economist.
What Is Trade Credit Insurance?
Trade Credit insurance, also called Accounts Receivable Insurance or Nonpayment Insurance (NPI), is a tool to reduce the risk of nonpayment by your customers. With growth in sales in domestic and international markets, companies and financial institutions are faced with increasingly higher risks of non-payment by their clients, concentration on key accounts, and constraints on working capital. Unpredictable changes in government policies towards foreign creditors, outbreak of wars / political violence, or other unexpected financial crisis can put your overseas obligations at risk. Trade Credit insurance is a risk management tool that can provide support for the trade expansion you seek.
Why Trade Credit Insurance?
Trade Credit insurance can help you:
- Transfer nonpayment risk on your accounts receivables to the insurer.
- Alleviate liquidity strains and insolvency as the result of nonpayment by your buyers.
- Reduce balance sheet and earnings volatility by mitigating large losses on your trade receivables.
- Reduce bad debt reserves and transfer the amount to your working capital.
- Access financing typically at better terms from your banks and financial institutions.
- Offer extending repayment terms to customers to improve competitive advantage.
- Get a second opinion on your credit decisions by our seasoned and knowledgeable underwriting experts.
- Take advantage of our collection efforts by our Claims department.
Who Can Benefit From Trade Credit Insurance?
Companies, manufacturers, multinationals, importers, exporters, and financial institutions financing or purchasing the receivables can benefit from Trade Credit Insurance.
What Is Eligible For Coverage?
Insurance can be purchased to cover either international or domestic sales, or a combination of both. Coverage is also available on contracts and capital equipment leases. Please refer to FCIA’s Specialty Coverages for more information.
What Is Not Eligible To Be Insured?
Sales of all goods and services are insurable except weaponry and sales made to subsidiaries or affiliates.
Does The Policy Support Financing Needs?
Using a company’s account receivables as collateral against borrowing is a common practice by many companies. FCIA Trade Credit insurance policies allow financial institutions to become the beneficiary on their borrower’s policy.
Is There A Minimum Sales Requirement?
To make the program cost effective, typically we recommend a minimum insurable sales of $20 million for domestic or $7 million for export sales.
What Coverage Options Are Available?
You can cover:
- An entire accounts receivable portfolio
- A group of (generally larger) named customers
- Sales to a single customer
- Risks on a single contract
What Is The Indemnity?
Depending on the policy structure, the indemnity typically could range up to 90% to 95%.
What Risk Does The Insured Keep?
The insured is responsible for the policy deductible and co-insurance as well as amounts that exceed the policy limits.
Buyers & Credit Decisions
With An FCIA Policy, Can I Still Make My Own Credit Decisions?
With Multibuyer policies, most of the smaller buyer credit decisions are made by the insured using the Discretionary Credit Limit (DCL). Under Key Account and Single Buyer policies, all credit limits are generally set by the insurer.
What Is Discretionary Credit Limit, DCL?
Most FCIA's Multibuyer policies with large number of buyers generally have a Discretionary Credit Limit (DCL). DCL is a policy feature that enables you to make your own buyer credit decisions on many of your customers. Because FCIA's DCL permits you to use many of your standard decision-making tools, it integrates easily into your standard credit management procedure and controls.
What Is The Requitement To Utilize A DCL?
To take advantage of FCIA’s DCL feature, companies must have at least one credit professional managing their buyer credit decisions and collections. The credit professional can be the CFO, or a finance / Credit Manager in the company.
Is There A Cap On Losses Under DCL?
There is no cap on the losses that may be claimed under the DCL. Policy aggregate limit of liability also applies to losses under the DCL.
Is There A Deductible On The Policy?
A Deductible is typically applied to Multibuyer policies with large number of buyers where a DCL is offered. Once the deductible is exhausted, it will not get reinstated during the policy term. Insureds can also choose to have a deductible on any policy to reduce the premium.
How A Buyer Can Be Approved Under The DCL?
There are many ways to approve a buyer under the DCL. The ledger experience is the most common way to approve a buyer. Please refer to our page on DCL to see all the options.
Claims Handling
When Can I File A Claim?
Generally insureds can file a claim between 90 and 180 days after the due date. Claims "waiting periods" for some export countries can be longer. Insureds should refer to their policy documents for details.
What Is The Deadline For Filing Claims?
This depends on the specific policy or cause of loss and can vary substantially. Deadline for Claims filing is usually expressed in the policy as a number of days or months after the due date.
How Long Should I Wait To Get Paid?
Claims are typically approved and adjusted within 60 days of receipt of a satisfactory proof of loss and supporting documentation, including assignment of the buyer obligation to the insurer.
What Is The Cost Of A Trade Credit Insurance Policy?
Generally, the cost of a Trade Credit Insurance Policy is a fraction of a percentage of sales depending on the volume, loss history and risk.
Are There Any Other Fees Involved?
There are no hidden fees with FCIA policies. FCIA does not charge for buyer’s underwriting or application fee.
We understand that an insurer's reputation for handling claims and collections is an important part of the purchase decision. FCIA's trade credit professionals have been paying claims and collecting bad debts for over 50 years, and we value our longstanding track record for handling claims fairly and timely.
Claim Filing and Adjustment
The waiting period before claims may be filed on FCIA policies can be as short as 90 days after default on a payment obligation, but can be longer under certain policy structures. During the waiting period the insured is expected to undertake its normal collection efforts including making written demand for payment on the obligor and any guarantors. FCIA stands ready to assist our insureds with pre-claim collection efforts at no additional cost to the insured with our in-house collection efforts. There is no requirement for overdue accounts to be turned over to FCIA for collection during the waiting period.
Collections and Recoveries
With FCIA insurance you can take advantage of our expertise in collecting delinquent obligations both domestically and internationally. Dealing with uncooperative debtors that hide behind excuses or their debtor-friendly legal system is an everyday activity for us, and we have a solid success rate in collecting. In the process, we have helped our policyholders recover millions of dollars for their own account related to coinsurance, deductibles and transactions made in excess of an approved limit.
Loss Payees
We regularly endorse Financial Institutions as loss payees under our policies to facilitate our insureds' financing needs. As a loss payee the Financial Institution acquires certain rights to receive claim payments and file claims. Learn more at Financial Institutions - As a Loss Payee.
Access Your Policy to File Claim Notification
Access requires an active policy, user ID and password.
To view your policy, log in
E-mail us today at [email protected] to receive or reset your user ID and password.
Company Products Applications
Multibuyer Policies insure a reasonable spread of your international and/or domestic sales of goods and services.
Single Buyer Policies allow you to cover a select transaction or contract. Our principal single risk policy types are:
Financial Institutions Products Applications
- Letters of Credit Application
- Export / Import / Pre-export Application
- Purchased Receivables Application
Product Brochures
Products for Companies
- Multibuyer Non-Cancelable Limits Policy Brochure
- Multibuyer Pay-As-You-Go Policy Brochure
- DCL Features Brochure
- Single Buyer Policy Brochure
Products for Financial Institutions
- Single Buyer Brochure
- Purchased Receivables Policy Brochure
- Payables Financing Policy Brochure
- Letters of Credit Policy Brochure
- Political Risk Brochure
Broker Appointment
*Please be sure to complete both parts of the Multibuyer Application
*Applications may vary in some of the states according to the regulatory requirements - please contact us with any question