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The Benefits Of Top-Up Insurance

2 Minute Read
Written by Kirk Cheesman
22 February 2021

One of our meat clients held a multi-million dollar limit over their largest customer up until August 2020 when their insurer’s appetite to cover this customer changed and they imposed a 75% reduction on the limit overnight.

NCI repeatedly appealed this decision based on supportive financials, strong trading history between our client and their customer, coupled with this particular client having an excellent track record at collecting their trade debts.

The insurer refused to back down leaving our client in an unpalatable position because, whilst they believed their largest customer would not pose a genuine credit risk, our client was exposing their balance sheet to millions of dollars given they were now trading substantially above the new reduced limit.  It was a classic trade credit insurance scenario and they needed to adequately cover the risk of their top customer failing.

NCI was able to negotiate a solution with another insurer to cover 75% of the original limit on a non-cancellable basis. While the client was glad to have a solution for the majority of the cover they needed, they were still short on the balance. NCI then approached our Top-Up insurance partner, Nexus Trade Credit, who were able to provide another 25% cover on this customer effectively putting our client back to their original limit on their top customer.

Top-Up insurance is a solution available for NCI clients in situations where all avenues to achieve your full limit with your primary insurer have been exhausted. This product enables businesses to trade insured at the full level, increasing your sales and keeping your customers happy.

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