Accounts-receivable coverage launched for smaller businesses
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Waldorf Trade Risk LLC, an insurance program administrator specializing in trade credit risk, on Monday said it has launched ReceivaSure, an accounts-receivable insurance program for small and medium-sized companies with $100,000 or more in annual sales.
The coverage will be offered in all 50 states on an admitted basis through Nationwide, Waldorf said in a statement. It is already available in more than 40 states, and the remaining states are expected to be admitted in the very near future, according to the statement.
The policy includes commercial risk protection for businesses whose customers become insolvent, seek Chapter 7 or Chapter 11 bankruptcy or the equivalent in their country of domicile, are in protracted default and continued delinquency, or are unable to pay invoices, the statement said.
It also provides protection for political risk exposures such as currency inconvertibility, exchange transfer risk, import/export embargo and license cancellation, the statement added.
The ReceivaSure program is offered through specialty insurance brokers, and policy requests can be submitted as domestic, which includes the U.S. and Canada; export, including all non-U.S. and Canada receivables; and global, covering all eligible business.
Waldorf quotes and binds ReceivaSure policies within one business day, with the exception of some international submissions, using its digital underwriting and policy administration platform, the statement said.
“Accounts receivable are generally one of the largest assets of small businesses, but are frequently uninsured,” David Waldorf, CEO and founder of WTR, said in the statement. “When accounts receivable are insured with a reputable carrier, asset-based lenders and trade finance houses are more likely to approve higher advance rates.”
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