Credit insurance: What is it and what are the benefits?
Why simply taking out a policy is not enough: avoid rejected claims.
The bankruptcy of a major customer is a significant business risk. But there is something worse: discovering that your credit insurance does not cover the loss due to an administrative error.
Forgot to request a limit? Reported turnover to the insurer too late? Your coverage disappears, and so does your profit. For many finance teams, this is a daily, invisible risk caused by working with separate lists and Excel. A policy only offers a false sense of security if the management is not watertight.
Why iscredit insurance management crucial?
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Meaning and mechanism
What is credit insurance?
Before we dive deeper into the solution, let’s go back to the core. What is credit insurance exactly? At its heart, it is a safety net. It protects your business against the risk of a customer being unable to pay their invoices—due to insolvency or bankruptcy, for example.
The meaning of credit insurance is therefore simple: it is the guarantee that goods or services delivered will ultimately be paid for, either by the customer or by the insurer. For many organisations, this type of insurance is essential for maintaining a stable cash flow and enabling growth without taking irresponsible risks. It gives you the confidence to do business with new parties or in new markets.
Why simply taking out credit insurance is not enough
Many companies think the work is done once the policy is signed. Nothing could be further from the truth. Taking out credit insurance is the starting point, not the finish line. A policy comes with strict conditions; insurers such as Atradius, Coface, or Allianz Trade require you to keep them constantly informed. If you fail to do so, your coverage lapses.
In practice, we often see finance teams managing this through complex Excel spreadsheets. A human error is easily made, but the consequences for your coverage can be disastrous. Credit insurance that is not properly complied with is a paper tiger: it looks impressive, but it does nothing when it truly matters.
How credit management software helped our customers
Pitfalls of managing your policy manually
Why do things go wrong so often? The answer lies in complexity and a lack of oversight. When you have hundreds of customers, you face the following risks:
- Forgetting to request limits: Your turnover with a customer grows, but you forget to increase the limit with the insurer. The result: a large portion of your supply is uninsured.
- Missing reporting deadlines: Insurers require you to report overdue payments within a specific timeframe. If you forget, your claim will be ruthlessly rejected in the event of a bankruptcy.
- Time-consuming administration: Finance professionals spend hours logging into portals, rekeying data, and checking policy conditions. This is not only expensive but also extremely prone to error.
Without smart tools, you are effectively gambling with your working capital.
What is credit insurance software and how does it help?
At Onguard, we believe your time is better spent on things other than rekeying data. That is why we offer a credit insurance solution that goes beyond mere administration.
Our software, PolicyManager in collaboration with our partner Aon, acts as the intelligent bridge between your ERP system and the insurer. We automate the processes that typically take up the most time and carry the highest risks:
- Automatic limit requests: Based on outstanding balances.
- Proactive alerts: Receive a notification before you risk acting outside your policy conditions.
- Real-time insight: See immediately which orders are covered and which are not.
In this way, we safeguard not only your coverage but also your peace of mind.
The power of Aon and Onguard
Did you know that our PolicyManager is the industry standard? Thanks to our intensive collaboration with Aon—a global leader in risk management and insurance—the software is fully tailored to the complex practicalities of multinationals.
Aon recognises that a policy only has value if it is managed correctly. That is why they rely on Onguard’s technology to help their clients with compliance and limit management. By choosing PolicyManager, you are opting for software that is tested and approved by the top tier of the insurance world.
Watch the video to see how this partnership strengthens your risk management.
Integration: Credit insurance as part of Credit Management
Specific credit insurance software ensures that you are always in control. What makes our approach unique is that we integrate credit insurance into the broader .
For example, a sales representative can see directly in the system whether there is still room within the limit before accepting an order. This prevents you from taking on uncovered risks. By using data intelligently, you transform the policy from an administrative burden into a strategic instrument for secure growth.
Frequently asked questions about credit insurance
Do you have any further questions about the process or our software solutions? Our colleagues are always happy to help with an initial introductory meeting. If you would like to explore further, the frequently asked questions below may help you.
Partnering for certainty
At Onguard, we do not see ourselves as a supplier, but as a partner in your financial health. We understand that you want to focus on running your business, not on the fine print of an insurance policy.
Whether you want to save on premiums through better risk management, or simply want the peace of mind that every invoice is covered: we have the expertise and the technology in-house. Together, let’s ensure that your credit insurance does exactly what it is meant to do.
Want to know more about this topic?
Would you like to dive deeper into the world of Credit Management? Take a look at these pages: