Trade credit insurance (TCI) is a method for protecting a business against its commercial customers’ inability to pay for products or services, whether because of bankruptcy, insolvency, or political upheaval in countries where the trade partner operates.
Trade credit insurance (TCI) reimburses companies when their customers are unable to pay because of insolvency or destabilizing political conditions.
Companies can choose to indemnify all their buyers, a group of specific buyers, or even just one particular trading partner.

Trade credit insurance:

• protects against default
• prevents losses in the event of a market collapse
• gives comprehensive information about potential and existing customers
• helps stabilize income

Examples of losses:

• bankruptcy proceedings against the debtor’s assets
• rejection of a bankruptcy petition for lack of assets
• a court order permitting the settlement between the debtor and the creditor
• payment order, forced administration, liquidation
• default for any reason – secondary insolvency, payment retention, protracted default, etc.