Want to Grow your business in 2011? Trade Credit insurance offers business security!

Trade credit insurance is a business insurance product that indemnifies a seller against losses from non-payment of a commercial trade debt. With trade credit insurance in place, the seller/policyholder can be certain that non-disputed accounts receivable will be paid by either the debtor or the credit insurer.

Trade credit insurance is a financial tool to hedge against both commercial and political risks that are beyond a company's control. Balance sheet strength is ensured, cash flows are protected, and loan servicing and repayments are enhanced.

A trade credit insurance policy also allows companies to feel secure in extending more credit to current customers, or to pursue new, larger customers that would have otherwise seemed too risky.

The protection it provides allows a company to increase sales to grow their business. Insured companies can sell on open account terms which, for exporters especially, can be a major competitive advantage.

Companies invest in trade credit insurance for a variety of reasons – including:

• Sales expansion: If receivables are insured, a company can safely sell more to existing customers OR go after new customers that may have been too risky without insurance.
• Expansion into new international markets
• Better financing terms – In many cases, a bank will lend more capital against insured receivables, and may also reduce the cost of funds.
• Reduce bad-debt reserves – This frees up cash for the company. Also, trade credit insurance premiums are tax deductible, but bad debt reserves are not.
• Indemnification from customer non-payment.

A wholesaler company’s credit department had granted a credit line of $100,000 to a customer. They then purchased a trade credit insurance policy and the insured approved a limit of $150,000 on that same customer.

With a 15% margin and an average DSO of 45 days, the wholesaler was able to increase their sales to realize an incremental annual gross profit of $60,000 on just that one account.

Whats Important to a CFO?

My clients tell me that growth, cost containment, asset protection and business continuity are their biggest day to day concerns.

All of these issues can be addressed by risk management services from an insurance broker.

Examples, Experience mid and Classification reviews; Loss forecasting; Cat modeling; Collateral reviews; Contract reviews.

Utilization of these concepts allows a company to take control of the insurance process and allows for broader coverages and less premium.

Is your broker providing you solutions or just taking your premium?

The Importance of Cyberliability Insurance Coverage in Response to Hacking

A massive and growing data breach recently engulfed a swath of US corporate titans focused on consumers exposing the names and email addresss of their clientele

In what could be one of the biggest such breaches in US history, computer hackers penetrated the databases of online marketer Epsilon at the end of March.

The incident comes three years after hackers penetrated Heartland Payment Systems, a credit and debit card processor.

A hacking ring stole more then 40 MM payment cards – the leader of the ring was sentenced to 20 years in prison.

http://www.usi.biz/

Gender bias claims not slowing down

Gender discrimination claims persist as a risk for employers despite widespread implementation of company policies on the issue and greater employer sophistication in this area.

According to the EEOC, gender discrimination charges accounted for 29.1% of all charges in fiscal 2010. Since 2000, they have registered in a relatively narrow range between 29.1% and the 31.5% reported in 2000.

The total number of charges filed with the EEOC has increased 25.1% since 2000, to 999,992 in 2010, which many attribute at least in part to the economy.

- Business Insurance 2011.

They key in these matters is to coordinate with your insurance carrier for defense and settlement.

Most carriers have an approved listing of counsel – but will often approve outside counsel depending on the case. Defense costs cannot be reimbursed if outside counsel is not approved.

Regardless, settlement amounts – when applicable - should never be agreed upon unless the carrier approves. Upon selection of counsel, An ‘Indication Coverage Letter’ details the ‘rate’, as it were, at which defense costs and applicable settlements are to be settled. Carriers will not pay beyond these rates unless there are extraordinary circumstances.  

The Soft Insurance Market - 5 Things to Be Aware Of!

The SOFT Insurance Market – 5 Things to Be Aware Of

• The ‘soft’ Property & Casualty insurance market is allowing companies to take advantage of significant premium reductions but now more then ever – with the economy and companies struggling alike - its coverage protection that counts.

-         As people suffer from job losses and lower incomes, the rate of claims and lawsuits against companies increases drastically.

-         Make sure you have the right coverages and adequate limits to protect your companies assets. Don’t risk being ‘bare’ in the event of a claim – don’t let others make money off of you!

-     Work force cuts mean lower productivity, less quality and potentially more lawsuits; Are you covered effectively for your products or professional liability?

• Yes, your premiums are at all time lows, but did you also lose your coverage depth?

• At what cost to your broker or carrier are lower premiums? Are they cutting coverage corners to maintain their profit margins?

• What is your broker holding back? Do you have all of the services available?

-         In a ‘soft’ market you should be getting MORE not LESS – there is no reason NOT to have enhanced service and broader coverages.

• If you ask your broker if you have the right coverages, does he/she really know?

When you have a specialized need you bring in an expert with the specific knowledge and experience of your business that you need.

USI’s Specialty Insurance programs provide significant premium reductions AND enhanced coverages and services unique to your business.

Let the SPECIALISTS work for you.

For more information, please contact:

Richard Hyder-Slater, SVP, 212 842 3765

Richard.hyder-slater@usi.biz

Settlement Reached in Firing Over Facebook Post!

And this is why company's nowadays block their employees ability to use Facebook at the workplace......What then when they post during non-working hours?

This was the crux of the case and raises the question of free speech.

Can one express oneself in this day of social networking - without being sued for slander and libel?

Or is that to come?

The Repeal of ObamaCare?

Contrary to what you are hearing or reading , it will NOT cost billions and billions to repeal the Healthcare reform bill. This is unfortunately mis-information meant to undermine the Republican controlled congress' efforts. However, the greatest failure of the bill is that it will add to Healthcare costs.

Healthcare needed to be reformed and made more available however what the people of this nation are upset about is not the reform itself but the idea that it literally comes with a 'bill' that they will have to pay for.

The Presidents great task is now to reduce the impact of these costs and thus paint the reform in a brighter light......stay tuned folks!