Protecting Your Business, and Your Bank Account, in Case Clients Don’t Pay (Published 2016)

James Daly, president and chief executive for United States operations at Euler Hermes, said that rates varied, but someone insuring $1 million in receivables through the company’s Simplicity plan could expect to pay an annual premium of around $7,000.

Michael Chen, president of Myco Furniture in Houston, said he had been using factors — groups that buy a company’s receivables at a reduced rate — but switched to credit insurance through Euler Hermes as a way to cut costs and be more selective in what the company insured.

This is where so-called limits insurers come in, offering coverage to firms with annual revenues of $1 million to $20 million.

Euler Hermes, a limits underwriter, recently introduced a plan called Simplicity, aimed at helping businesses with $1 million to $5 million in sales. Another insurer, Coface, offers the International Policy, an industry favo... See more