Pricing

How Much Does Trade Credit Insurance Cost?

Illustrative premium ranges

Indicative annual premium by insured sales volume (whole turnover, domestic-weighted book, ordinary loss history). Actual terms are underwritten.

Annual insured credit sales	Indicative rate	Indicative annual premium
$2,000,000	0.35%–0.61%	$15,000 (minimum premium applies)
$5,000,000	0.25%–0.50%	$15,000–$24,750
$20,000,000	0.15%–0.33%	$30,000–$66,000
$50,000,000	0.10%–0.24%	$50,000–$121,000
$100,000,000+	0.08%–0.20%	$80,000–$198,000

The eight rating factors that actually move the number

• Loss history. Three clean years earns credibility; a recent large loss prices in, though it also proves why you are buying.
• Buyer quality and spread. A thousand small accounts rate differently than five giants; concentration loads the rate or moves the structure toward key-account form.
• Terms of sale. Net 30 open account is base; extended dating, consignment and pay-when-paid features add exposure time and rate.
• Industry. Construction-adjacent trades, fresh produce and sectors with heavy dispute or preference activity carry loadings; diversified industrial distribution earns credits.
• Country mix. Export sales price by obligor country; OECD buyers rate near domestic, emerging-market names carry country premia.
• Indemnity and deductibles. Dropping indemnity from 95% to 85% or accepting a meaningful aggregate deductible visibly reduces rate.
• Credit management quality. Documented procedures, real stop-shipment discipline and clean credit files earn both rate credit and larger discretionary authority.
• Structure. Whole turnover prices lowest per dollar; single-buyer prices on that name alone; excess of loss prices lowest of all in exchange for your retention.

The premium is not the whole economic story

For companies that borrow against receivables, credit insurance frequently pays for itself in the borrowing base before the first claim. Lenders commonly advance 70–80% against uninsured domestic receivables and exclude foreign accounts, concentrations over a threshold, and extended-term invoices entirely. With an assigned policy, advance rates of 85–90% and eligibility for previously excluded accounts are routine outcomes. On a $10 million ledger, a ten-point advance improvement is $1,000,000 of additional availability — against a premium measured in tens of thousands.

Add the quieter economies: bad debt reserves tuned to retained exposure rather than raw uncertainty, credit-department leverage from the insurer’s buyer intelligence, and the sales you can accept at insured limits that internal appetite would have declined.