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What does credit insurance cost?

Skrevet af Lasse Henriksen | jun. 24, 2023

Credit insurance policies are costed against a range of risk factors. The lower the risk, the lower the price of the premium which typically costs policy holders between 0.1% and 0.5% of the insured turnover. 

In addition to the insurance premium itself, there are also fees for adjusting your credit limit. 

When calculating your premium, your credit insurer will usually take these factors into account: 

  • Credit terms - The longer the credit terms, the greater the risk and the higher the premium. 
  • Geography - If you do a lot of business in countries and areas with political unrest, weak local currency or poor payment history, this could affect your premium.. 
  • Concentration risk - If you are highly exposed to a single industry or have few large customers, this can lead to an increased risk of loss.
  • Loss historyThe number of losses affects your premium. Many losses are likely to result in a higher rate, while fewer losses can lower your premium. 

You are buying much more than an insurance

In many cases, the savings and benefits of having credit insurance will often exceed the price. Better insights into your customers' creditworthiness are likely to result in fewer losses and, by using Atradius, you will save on the costs of a rating agency. At the same time, you get more in-depth information and the opportunity to get more detailed customer ratings. 

We have local offices in more than 50 countries, and at no extra cost, we help you enter new markets without taking unnecessary risks. 

When you insure your credit sales, you will also often find that you can increase your borrowing capacity and secure better loan terms at the bank. 

In addition, we can help you benchmark payment terms, which can help secure sales or help you avoid unnecessarily long credit periods. In this way, we support your growth and help you improve your cash flow. 

Your credit insurance premium

Your credit insurance premium is usually calculated and renewed on an annual basis. Our customers typically pay their premiums in monthly instalments.