If you’ve ever wondered if an invoice is ever going to get paid….you don’t have to ask yourself “what are the benefits of credit insurance coverage?” However, credit insurance is often a worst-case scenario solution and other solutions like training and coaching your finance team to be proactive or aggressive around collecting unpaid accounts receivables, developing standardized best practices, policies and procedures, the use of a respected collections agency etc. are good steps to helping reduce steadily the impact of not to be able to collect on an invoice.

What’s Credit Insurance?

Credit insurance, otherwise called trade credit insurance, is a type of commercial business insurance that ensures you will receive the money you are owed if your customer is not able to pay. Many business owners purchase credit insurance for the reassurance it offers. It is especially important for multinational businesses or individuals with international customers, as with this type of insurance, you won’t need certainly to worry if your foreign customer is not able to pay as a result of blocked funds, political unrest, or another unforeseen circumstance.

FAQ:

So what are the benefits of credit insurance coverage?

The benefits of credit insurance coverage are numerous and we’ve outlined numerous them below:

One of many key great things about credit insurance coverage is that it can cover your Canadian, US and Foreign sales/accounts receivables for non-payment.

Credit insurance coverage covers large, medium and small invoices to whatever the size of your company or that of one’s customer there’s coverage suited for you

Another of the benefits of credit insurance coverage is that it can cover as much as 90% of an invoice which is unpaid.

Credit insurance coverage if for a wide range of reasons that you haven’t received payment including political, bankruptcy etc.

The ability to take back cash flow by utilizing credit insurance coverage to boost your business’s power to secure or increase financing is one of the great things about credit insurance coverage.

Credit insurance coverage can allow you to grow your company by feeling comfortable in promoting your company in new markets globally as you have the certainty of receiving payment.

ALIGNED Insurance brokers can secure credit insurance coverage from many leading providers including EDC, COFACE & Euler so you have choice

What can credit insurance do for your company?

If you’re wondering what credit insurance can do for your company, you’re in the right place.

Credit insurance can protect your company: Credit insurance might help businesses protect their balance sheets, safeguarding against from insolvencies and slow payment to political risk and blocked funds.

Credit insurance can fund your company: This business insurance solution can fund your company by securing an otherwise unprotected asset, resulting in a rise in working capital access on domestic and export A/R.

Credit insurance can grow your company: With credit insurance in your back pocket, you will feel empowered to approach foreign markets the exact same way you do local ones and offer longer payment terms, resulting in growth for the business.

Where can I purchase credit insurance?

You can buy credit insurance from a wide range of insurance companies in Canada. However, the wisest decision you can make is by purchasing credit insurance from an insurance broker. Insurance brokerages like ALIGNED Insurance make searching for credit insurance easier than ever before.

Our expert brokers can answer any questions you might have, obtain and compare quotes on your own behalf, and walk you throughout your policy options. Find comprehensive coverage at a good rate with ALIGNED. Contact us to get going or click here for a free quote.

Many people are starting to get the travel bug again and planning vacations that include travel to different states and countries.

However, due to residual effects of the recent pandemic, there are many unexpected situations that can arise, including illness, emergencies, switching jobs and losing vacation time, or simply changing your mind.

But if you have already booked your flight, hotel or other events and need to cancel, and you are unable to secure a refund, or rescheduling is not currently an option, what happens to your hard-earned money?

How will you recoup financial losses associated with travel deposits and other items that aren’t covered by a basic trip insurance policy?

The Solution: Cancel For Any Reason Insurance

The optional Cancel For Any Reason (CFAR) add-on benefit offers coverage for the types of situations described above, particularly as it’s related to reimbursement for refundable trip costs and certain nonrefundable deposits.

CFAR insurance expands the benefits of basic trip cancellation insurance, but these two types of insurance are distinctly different.

Trip cancellation insurance covers specific, unforeseen incidents like injuries or illnesses, natural disasters, lost passports or other covered issues beyond the insured’s control. But only CFAR allows you to cancel your trip plans and recoup prepaid travel expenses that would have otherwise been nonrefundable.

What Does Cancel For Any Reason Cover?

Different policies offer varying levels of coverage. In general, though, Cancel For Any Reason coverage is a supplemental option to add to traditional trip insurance plans, and can help travelers get reimbursed for costs not otherwise covered in their regular cancellation policy. Money spent for things like pre-paid trip deposits, transportation or lodging doesn’t have to be lost just because you have to cancel your trip for a reason not covered by regular trip cancellation insurance.

By adding CFAR insurance to your trip insurance, you’re giving yourself the freedom and peace of mind that comes from knowing you can cancel your plans for any reason (even if you just don’t feel like going) and still recoup financial expenses.

It is important to note that trip insurance is only available to American citizens.

Basic Trip Insurance vs Trip Insurance with CFAR

If you need to cancel your trip, under a basic plan, you’re only covered under a limited number of circumstances whereas a basic insurance plan generally gives you 100% reimbursement if any of these three situations force you to cancel your trip plans. But you won’t be protected for any other reason.

However, when you purchase CFAR with your insurance plan, you can, like the name suggests, cancel for any reason and still receive some level of reimbursement (usually up to 75%).

Under a basic insurance plan, there are significant limits as to what expenses can be reimbursed. When you add CFAR to your insurance plan, you may be reimbursed, depending on the policy, for a wider range of travel-related expenses, like:

• Transportation
• Hotel deposits
• Vacation rental stay
• Car rental
• Event tickets
• Other travel expenses

Beyond the money-saving advantages CFAR trip insurance has over basic plans, there are a few other reasons why adding this benefit is a smart move. Here are some of the top perks:

Peace of mind. Knowing you’re covered if you have to cancel lowers the stress of planning and coordinating your trips, so you can focus on getting the most out of your travels.

Flexibility. The cancellation policy under basic insurance plans doesn’t cover bad timing. With CFAR you can rest easy if the travel dates end up not working out for one of your travel companions, or if one of life’s most important moments, like your newest grandchild arriving ahead of schedule, catches you by surprise.

Safety first. As Covid cases spike in some regions of America, many would-be visitors to the U.S. are understandably apprehensive about traveling. By purchasing CFAR with your trip insurance, you’re covered if your destination state becomes a Covid hot spot or even if you decide you just don’t feel safe traveling there.

Are There Any Restrictions with CFAR?

While CFAR gives travelers many advantages, there are a few restrictions to keep in mind.

If you want the extra financial safeguard this insurance offers, you’ll need to purchase it when you purchase your original policy. Should you need to cancel your trip, you have up to 48 hours ahead of your scheduled departure to do it.

When you purchase CFAR with your plan, you’ll need to make sure all prepaid nonrefundable trip costs are insured and that this amount is added to the total trip cost.

Your reimbursement depends on the amount specified in your policy, generally about 50% to 75% of covered costs. It does not provide a 100 percent refund.

The CFAR benefit is only available for trip insurance plans; it is not an option for travel medical insurance plans. A trip medical insurance plan is recommended.

It is important to note that you cannot choose which leg of the journey you want to insure. You must acquire CFAR insurance coverage for the full cost of all non-refundable prepaid trip arrangements.

For U.S. citizens and residents traveling within the country or overseas, the right travel insurance policy will help you pay for medical care during your trip and protect you against financial losses resulting from canceled or interrupted travel plans.

It’s important to know that all travel insurance plans are not created equal. There’s no one-size-fits-all plan or policy. There are many travel insurance providers offering so many different plans. It can be a daunting task to find the best travel insurance for your needs.

You’ll want to ask about your specific policy as some plans may exclude travel cancellation due to circumstances like pre-existing conditions, pandemics, death of a pet, war, and more.

How much does CFAR cost?

CFAR coverage adds 40% to the cost of your base travel insurance price and travel insurance typically costs between 5%-10% of your total trip cost. Let’s say your total trip cost is $5,000 and the price of your base travel policy is $500, (10% of trip cost), you might pay $200 to add CFAR insurance to your plan. In this case, the total cost to insure your trip with the CFAR add-on would be $700.

CFAR insurance may cost more than standard travel insurance policies but it gives you the flexibility of being able to cancel your trip plans for literally any reason. We’re slowly moving past the pandemic but people are still understandably apprehensive about travel. A lot of travelers these days are booking flights far in advance and CFAR can help them navigate the unexpected.

Is CFAR insurance worth it?

Knowing that any circumstances are covered under CFAR the added cost can be worth it. A cancellation policy fills in the coverage gaps of a basic travel insurance policy.

Although some people only rely on similar coverage that travel credit cards claim to provide, that coverage can often come with a long list of exclusions. Please note that not all cards may provide such protections. Be sure to check with your bank / credit card company to know exactly what is covered and what isn’t.

Is CFAR insurance absolutely needed?

As travel regulations continue to evolve, post-pandemic, travelers are having to face the reality that all travel is uncertain right now. Due to changing restrictions, trips and vacations are more likely to be canceled or rescheduled. To be as covered as possible, travelers should consider purchasing Cancel For Any Reason (CFAR) coverage. It can help recoup the costs that come with canceling your trip when unforeseen circumstances arise such as:

• Your trip is expensive.
• Your trip involves multiple destinations.
• You’re less than 100% certain you’ll be able to go.
• You’re nervous about what might be happening in your destination country by the time the departure date comes around.
• COVID-19 in your destination country might require quarantine.
• Travel bans to and from your country of origin or your destination are more likely.

In these cases and more, spending a little extra for CFAR is a bargain considering that with only a standard travel insurance policy, you could lose thousands of dollars if you have to cancel your trip due to a non-covered reason. Whether to buy CFAR or not is up to you. The main thing is that you have coverage that satisfies your most important needs so that you stay safe physically and financially during your trip.

How to Pick the Right CFAR Travel Insurance Plan?

Determine Eligibility

Some insurance policies are limited to certain states in the U.S. and residential status. For example, the CFAR add-on for the Travel Safe Classic plan is not available to residents of New York.

Review Credit ratings

Look at the Credit Rating provided by agencies such as AM Best, Fitch, and Standard & Poor’s. The rating is given on the assessment of overall financial strength that is the insurer’s ability to meet policyholder obligations. Make sure your base insurance plan has a good rating.

A score of A (excellent) by renowned credit rating agencies such as AM Best is considered a gold standard. All the policies listed on VisitorsCoverage are rated A (excellent).

Assess basic travel insurance coverage

Since CFAR is a supplementary coverage, evaluate the basic coverages of your base plan. For instance, if your base plan covers trip interruption, plans such as Worldwide Trip Protector by Travel Insured and Safe Travels Voyager by Trawick International, offer up to 150% of the trip cost for trip interruption.

Understand the claim process

Look for policies with a straightforward claim process and good customer support. Speak to our Customer Success Team to understand which policy will match your requirements.

Our Top 3 CFAR Insurance Plans

To help you determine which Cancel For Any Reason plan is right for you, we created this visual for a side-by-side review of some of our best CFAR insurance plans for U.S. residents.

Safe Travel Voyager by Trawick International

The Safe Travels Voyager plan is designed for those in search of the highest available benefit limits to protect their trip.

Highlights of Safe Travels Voyager Plan:

• Comprehensive Coverage
• Only available to U.S. citizens and U.S. Residents
• Includes Primary Medical Coverage up to $250,000 per person
• Covers trip costs up to $100,000 per person

Provides coverage for Pre-Existing Medical conditions on plans purchased prior to or with final trip payment

• Trip Cancellation: 100% of Trip Cost
• Trip Interruption: 150% of Trip Cost

Include trip delay of $2,000 for potential accommodations/lodging expenses

COVID-19 Medical Expenses are covered and treated the same as any other sickness

• Baggage Delay $600 (8 hours or more)
• Baggage and Personal Effects $2,500
• 24 Hour AD&D $25,000

The CFAR option covers 75% of the prepaid, non-refundable, forfeited payments paid for your trip if your trip gets canceled for any reason not otherwise covered by the policy. A generous 21 days is available to add the CFAR coverage after your initial trip deposit.

Worldwide Trip Protector Plus by C&F Travel Insured

The Worldwide Trip Protector Plus has the most comprehensive list of covered reasons for canceling or interrupting your trip, including work-related reasons, bankruptcy, unfavorable weather, etc. The maximum trip duration under the plan is 180 days.

An insurance aggregator site describes a web site that contains information from different insurance companies. A lot of people tend to spend time and money to contact various insurance brokers. However, the aggregator site avails all the data at an individual point for the convenience.

Locating a cost-effective insurance plan is among the most hectic tasks. Well, this is before the rise of the newest, improved internet technology. The reliable internet connection has revolutionized a, with many people accessing online insurance. The only real concern now’s how to choose the ideal insurance plan one of the several. That’s where insurance aggregators come in.

What is an Insurance Aggregator Site?

An insurance aggregator site describes a web site that contains information from different insurance companies. A lot of people tend to spend time and money to contact various insurance brokers. However, the aggregator site avails all the data at an individual point for the convenience.

Who are Aggregators?

Aggregators are individuals who source insurance quotes from different insurers. They list all the data on the insurance aggregator site. Your website then provides a form where you fill your specifications to come up with the quote. They save you the time that you’d have otherwise used to see various insurers or speaking with different brokers.

How Does Insurance Aggregators Work?

One of many main concerns that come with using aggregators is accuracy. For example, there are cases of people finding different prices offered at purchase as set alongside the one on the aggregator. Although there’s only a little window of error, most aggregators’ information is factual. They update most of the systems regularly to complement any changes in insurers’ policies.

The only real concern comes once you key inaccurate information when filling the quote form. You might also believe it is different when comparing dissimilar policies. The reliance on the information from the aggregators implies that insurers are willing to utilize them as a dependable supply of leads.

The Developmental Stages of Aggregators

Although they start as price comparison sites, insurance aggregators tend to experience sustained growth over a period. Earlier on, they offer necessary price comparisons among the different insurance providers. At this point, the aggregators count on ads and listings to attract site visitors.

The 2nd phase of the growth of aggregators involves lead-generation. After attracting traffic through sales comparison, aggregators direct them to brokers. Eventually, aggregators eliminate brokers by offering similar services, and as a result, acting whilst the broker comes with higher commissions.

An aggregator matures by becoming the service provider. Having interacted with the client and several providers, they’re ready to notice gaps in the market. They turn to seal most of the loopholes that come with the present insurers making them a winner among clients.

Most insurers appreciate this aggregator growth process. Rather than fighting a losing war, they either seek to cooperate with the aggregators, get them out, or start their aggregators. An insurer might fail to work well with aggregators and succeed when working with a powerful brand. The insurer invests in expanding the client base and providing excellent services at affordable rates.

Challenges Faced by Aggregators

Whilst it may seem that insurance aggregators own it easy, they also have several challenges. One of many significant challenges is the cost of customer acquisition. Most aggregators count on ads and listings for initial site visits. They incur a lot in both traditional and online advertisements.

The other concern with aggregators could be the reliance on insurance regulatory policies. Any changes in the machine affect how they operate and may also drive them out of business. Like, the changes in access to data regulations mean they have access to lesser data, translating to low sales.

Aggregators also face stiff competition throughout their growth stages. They compete with other aggregator sites, brokers, insurers, and other service providers. Ultimately, the only way to survive would be to monitor industry and evolve with customer needs.

What Is definitely an Agency Aggregator?

Solutions once the aggregator challenges are overwhelming. They can arrive at a place where they don’t attract any new insurers and traffic ultimately causing failure to generally meet targets. To prevent these issues, different aggregators come together to create an agency aggregator.

An agency aggregator is an official grouping of aggregators for mutual support. The aggregators coming together helps in economies of scale that reduce operational costs with access to broader markets. The more vibrant agency aggregator becomes, they gain more access to insurers for more profit.

Other roles an agency aggregator plays include; specialized training, finding negotiated benefits, and within the insurance errors and omissions.

What are the Different Types of Insurance Agents?

When buying an insurance plan, you are most likely to connect to an agent, as opposed to the insurer. There are two main types of insurance agents; captive and independent agents.

Captive agents sell the insurance policies of an individual insurance company. They identify with this only brand and may have it on their office buildings and merchandise. The captive agents are also likely to market more. The primary concern with captive agents is people who run less competitive brands makes less income. Changes in the mother company or even leaving the united states affects the agent.

Independent agents, on the other hand, deal with several insurers. They do not work with respect to any company. The significant benefit that comes with independent insurance agents is flexibility. Different policies show that you may get a cover that matches your needs. You can even change your strategies depending in your changing needs.

The freedom of the independent insurance agent allows them to participate other associations and work as agency aggregator. The agent still retains their independence despite becoming area of the agency. In addition they maintain the possibility to work from their chosen place, set their operational policies, and negotiate commissions with the insurer.

Some of the factors to an independent agent should consider before joining an aggregator agency include;

• Benefits Accrued

An unbiased agent should only join an agency aggregator when sure it comes with benefits. Some of these benefits include access to several carriers, higher commissions, business, and top-notch management software. The agency should also offer possible mergers and cooperation with other business partners.

• Costs

Before joining an agency, understand the particular price of what it indicates within them. Make sure you are comfortable paying the startup, monthly, maintenance, and exit fees. These fees vary depending on how much the cluster encourages entry and exit.

• Clout with insurance providers

The key reason to participate an agency is access to multiple insurance providers. Before you enter the agency, understand the partnership they have with the different insurance providers. Read and understand the insurance cluster agreement before learning to be a member.

• Group Attrition

Before you join an agency, consider how often members leave and its effects on the remaining parties. Join a stable group that doesn’t experience cases of members leaving often. One agent leaving could be destructive as you’ve to start updating books and compensate for the lost income.

Conclusion

Insurance aggregators are one of the very disruptive inventions in the industry. Its success has seen most insurance companies willing to work well with them or start their own. Although at some time they seemed a threat, aggregators and insurers can interact and prosper. The insurers who don’t want to work well with aggregators must have a huge brand name and must stay ready to spend more on marketing.