How much does credit insurance cost?

The price of a credit insurance policy can be shown as a simple equation

percentage of turnover x level of risk = cost of policy

Costs vary from business to business and even between individual customers as most credit insurance policy providers look at a variety of factors before determining level of risk.

The price of credit insurance

Taking out insurance to cover your cash flow is similar to many different insurance policies when it comes to working out the price. For example, building insurance is calculated according to the size and location of the property and how vulnerable it might be to risks such as flooding or earthquakes. This calculation is unique to the building. In the same way, the cost of credit insurance is calculated against perceived levels of risk and specific requirements, which means that every policy is unique.

Your credit insurance company will assess the risk based on the trading history you have with your customer as well as their history trading with others, the stability of the sector, the political volatility of your customer’s location and other factors. They will also consider your individual needs, for example do you need cover for a large or long project that requires non-cancellable credit limits or whole turnover cover?

Calculating the cost of Atradius Credit Insurance

At Atradius China we offer cover under a system called Modula. This system allows us to tailor cover – including the cost of the cover – to the individual business. This means that regardless of whether you run a small business focusing on domestic trade, or are the credit controller of a large multinational, our policy will meet your needs and your pocket. You won’t need to pay for something you don’t need as the policy is designed specifically for your own needs. Learn more about Atradius Credit Insurance.

As a guide, the cost of credit insurance typically ranges between less than 0.1% of turnover to more than 1%. Each policy – for each of your customers – will be priced uniquely. It is the trade you have with your customer that is covered, so you’ll only need one policy per customer per year. Premiums are usually paid quarterly.

Related content

What is credit risk?

Credit risk is the danger of a business or person failing to pay the balance they owe. Learn how to minimise credit risk with Atradius China +86 21 61608022.

Risk map

The Risk Map gives an overview of the level of risk associated with countries worldwide. Risk ratings are based on a variety of political and economic factors gathered by our Economic Research Team.

Why credit management is important?

Learn how good credit management helps prevent late payment and detects potential non-payment before it becomes a problem. Atradius China +8621 61608022.


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.