Secure Your Trade Finances

Our risk underwriters play a crucial role in evaluating and sanctioning risk exposure, boasting specialized expertise in their specific industry sectors, clients, and markets. Black Diamond Brokers Services team continually monitors new financial data to remain abreast of any shifts in the market landscape. Furthermore, they engage directly with you and your purchasers, conversing about credit limits and overall market trends.

Our assessments also evaluate the cost of trade credit insurance on your business, which depend on a few different factors, mainly the size of the coverage limit and the specific terms of the policy.

Transactional Cover is a tailor-made policy crafted for businesses safeguarding assets overseas or in need of protection for import or export transactions, as well as financial institutions that provide trade and export finance solutions. This policy aims to minimize and control risks including contract disruptions, non-payment, confiscation, and political uncertainties.

There are three primary types of transactinal cover: whole turnover, partial turnover, and selective default. Each type of coverage has its own benefits and drawbacks, Black Diamond assist our clients to understand the differences before selecting a policy.

Black Diamond's claims management services offer expert and rapid support in addressing claims related to compensation, reparation, restitution, or any other form of redress for financial damage or violation of insured contractual duties. Within the realm of international trade finance insurance coverage, Black Diamond oversees and administers the resolution of a firm's claims concerning risk mitigation instruments like guarantees, bonds, sureties, or traditional insurance, in instances where their commercial counterpart has failed to uphold the terms of their insurable agreement.

Black Diamond source several varieties of trade credit insurance, each designed to offer varying degrees of coverage. The most prevalent forms include single-buyer policies, portfolio policies, and country risk policies.

Single-buyer policies offer coverage for companies that provide credit to just one client. Such policies are advantageous for companies facing significant exposure to a single client or dealing with clients who have a substantial default risk.

Portfolio policies are designed for companies extending credit to multiple customers. These policies are suitable for businesses with a varied clientele or those whose customers present a minimal default risk.

Country risk policies cater to companies extending credit to clients within a specific country. They are particularly useful for businesses with clients in nations experiencing high levels of political or economic uncertainty.

The price of your trade credit insurance policy will fluctuate based on several factors, including the sector you operate in, the annual revenue you wish to insure, your past experiences with bad debt, the efficacy of your internal credit management processes, and the credit standing of your customers. Should your sales encompass a variety of industries and countries, the rates for your trade credit insurance will be adjusted to mirror the collective risk profile of these elements.

How do we determine your trade credit insurance premium?
The calculation of your trade credit insurance premium is tied to a fraction of your turnover, typically around 0.25% of each dollar earned. For example, if your revenue was $20 million in the previous year and you aim to insure the full amount, you would generally expect to pay a premium under $50,000. Investing in a trade credit insurance policy can often recoup its cost multiple times over, even without filing a claim, by enabling you to boost your sales and profits without assuming extra risk.

At Black Diamond Brokers, we meticulously track a wide array of industries. From Precious Metals to Chemicals and Pharmaceuticals, Machinery and Engineering, among others, Black Diamond boasts specialists who keep a keen eye on the markets most vital to our clients. Our research extends beyond local enterprises to encompass risks associated with international markets, delivering a quarterly risk map that highlights emerging markets and changes across different countries. Our goal is to furnish our clients with comprehensive information, ensuring that avenues for expansion are not only identified but also present a promising prospect for your business.

The worldwide market for trade credit insurance was estimated at USD 9.56 billion in 2022, with projections indicating an annual growth rate of 11.1% from 2023 to 2030. This anticipated growth in the trade credit insurance sector is largely due to the expansion of trade activities across various regions, which has heightened the need for trade credit insurance to mitigate the risk of non-payment by overseas buyers.