A simple guide and overview to the differing structures available:

Datum Line Cover or Top Trader or Catastrophe cover

This is where medium and most definitely larger companies can make a saving by switching to this type of policy (although can used by SME's in certain cases), a Datum Line is an agreeable figure between you and the insurer (a bit like a threshold - first loss) whereby all accounts above the agreed figure (Datum Line) are insurable, this has the added benefit of not having to pay premiums on accounts below the Datum line figure thus reducing premiums whilst maintaining most of the benefits of wholeturnover cover.
If you have a wholeturnover policy or a policy with an aggregate first loss then you need to talk to us, changing structures could save you £££'s.
Site Quicklinks:-
Credit Insurance
Credit Insurance Alternative
Credit Insurance Structures
Credit Insurance Costs
Jargon, Myths and History
Telephone Numbers
Fax back contact form
Email contact
Finance quote form
Credit Insurance quote form

Catastrophe Cover

Designed for medium to large organisations who can afford to sustain a reasonable level of bad debt. The policy can be issued on a self underwriting basis (see Credit Insurance Alternative for more details) or on an 'all-vetting' basis or a mix of the two - where the underwriter is responsible for writing credit limits on the policy holders debtors over a pre-agreed figure and where an established credit management procedure is already in place, the rest can be vetting by the insured.

Specific Account Cover

More difficult to arrange as normally the insurer is committing to a 12 month fixed non-cancellable period (although shorter and longer periods can be arranged) The policy provides cover against the failure of a single customer. 100% indemnity is sometimes available with no Excess however each case is dependent on the buyers strength and it may be more cost effective to take a Datum or Wholeturner policy where cover on more than one buyer is required (often underwriters will also agree to more cover where there is a better spread of risk as opposed to only one risk).

Principal Customer Cover

Cover for the company's major customers only. However, up to 40 customers can be insured under these policies with 90%-100% indemnity generally available (not disimilar to the Datum Line policy in principal i.e. covering debts over a certain value).

Month End Balance Policy

For mid to larger companies where a very strict credit management procedure are in place, clients only declare the value of any outstanding invoices at the end of the month and therefore only pay premiums on the outstandings.

Cover for SME's

Whole Turnover Cover

The most traditional form - designed to cover most eventualities and normally incorporating a low first loss, 80-90% indemnity is normally available, with the option to self vet at the lower end on the debtor book (usually between 5,000 to 10,000 before refering to the insurer). Larger debtors are vetted by underwriters via a quick on-line system. Some policies also carry other benefits such as optional debt collection by the insurer - which a couple of them do for free.

There are now a range of cost effective Credit Insurance products to help SME's below 1million t/o off the starting block.

Credit Guarantees

A Guarantee offered to clients suppliers to assist in increasing clients own credit lines with existing suppliers or establishing credit with new suppliers.

If interested in obtaining a quotation for credit insurance, free of charge and without obligation or for a further discussion on where we may be able to help, please contact us via one of the contact links. If you already benefit from credit insurance we would be happy to provide you with a free of charge second opinion on its cost effectiveness or there may be added service benefits that we can bring to the current policy.


If you answer yes to any of the following, then we can probably help you.

- Ever renew your policy and wonder did I get the best deal, am I getting value for money.
- I do not currently insure, what does it cost.
- I already Credit Insure but is there a more cost effective structure.
- Could a broker get my premiums reduced for me or could a broker improve the terms of my current policy
- Would another insurer have covered my key accounts or accounts of concern.
- If I credit insure my debts, will a Factor/Financier/Bank allow me further funds or an improved lending rate.
- If I have non-recourse finance, could I get a better deal if I change to recourse with separate credit insurance cover.
- Does/can my current broker go to the whole credit insurance market place? or do they just go to the insurers that pay the most commission to them.
- I do not want to cover accounts at the lower end of my ledger, but I also do not want to pay premiumís on them either, are there other flexible options to wholeturnover.
- Could I cover say just the top ten of my highest exposures.
- My top accounts are industry Blue Chips, can I exclude these so I do not pay premiums on them.
- I already Credit Insure, is there a more cost effective structure for me.
- I want to/do not want to handle my own debt collection, is there a policy for me
- Am I adhering to the terms and conditions of my policy, a second opinion would make me feel more at ease.
- Is there an insurer who is good at covering non-limited companies.

© copyright July 1996 to 2011 CIFF - Credit Insurance, Factoring & Finance