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Trade Credit Insurance
When customers don't pay, it hits your cash flow hard. Trade credit insurance protects your accounts receivable against non-payment, insolvency, and prolonged default so your business stays financially stable in Vaughan, Ontario, and across Canada (except the Province of Quebec).
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Receivables Protection
What Is Trade Credit Insurance?
Trade credit insurance protects your business when customers fail to pay. It covers your accounts receivable against buyer insolvency, protracted default, and political risk so an unpaid invoice doesn't turn into a write-off.
Accounts Receivable Protection
Covers outstanding invoices when a customer can't or won't pay, whether that's because of bankruptcy, insolvency, or going well past the agreed payment terms.
Cash Flow Stability
Keeps your cash flow predictable even when customers default. You can extend credit with more confidence, grow sales, and enter new markets knowing you're covered.
Who It's For
Who Needs Trade Credit Insurance?
If your business in Ontario sells goods or services on credit terms, trade credit insurance is worth looking at.
Manufacturers & Distributors
Wholesale & Trade Businesses
Exporters & Importers
Agricultural Producers
Construction & Building Materials
Technology & SaaS Companies
Staffing & Service Firms
Food & Beverage Suppliers
B2B Service Providers
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Boardwalk Insurance is a RIBO-registered commercial insurance broker in Ontario and a division of Oracle RMS. We compare quotes from 30+ Canadian carriers, including Intact, Aviva, Economical, and Northbridge, and serve businesses across Canada (except Quebec).
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Protect your receivables against customer non-payment. Compare trade credit insurance options from top Canadian insurers.
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Key Advantages
Why Choose Trade Credit Insurance?
Turn unpaid invoices from a risk into a managed cost and unlock growth your competitors can't match.
Bad Debt Protection
Recover up to 95% of unpaid invoices when customers default or become insolvent.
Cash Flow Stability
Keep your working capital predictable even when buyers fail to pay on time.
Confident Growth
Extend credit to new customers and enter new markets with the safety net of insurance.
Better Financing
Insured receivables are stronger collateral, unlocking better borrowing terms from lenders.
What's Covered
What Does Trade Credit Insurance Cover?
Every policy is different. Below are the most common protections trade credit insurance provides for businesses in Ontario.
Buyer Insolvency
Covers your receivables when a customer goes bankrupt or enters insolvency proceedings and can no longer pay.
- Customer bankruptcy
- Court-ordered insolvency
- Receivership or administration
- Creditor protection filings
Protracted Default
Covers invoices that stay unpaid well past their due date, even when the buyer hasn't formally declared insolvency.
- Invoices past due beyond threshold
- Slow-paying customers
- Disputed invoices
- Extended non-payment
Political Risk
For exporters: covers losses when payment is blocked by government actions, currency restrictions, or political instability in the buyer's country.
- Currency transfer restrictions
- Import/export licence cancellation
- War or civil unrest
- Government payment moratoriums
Credit Monitoring
Most trade credit policies include ongoing credit monitoring of your buyers, giving you early warnings when a customer's financial health starts to slip.
- Buyer credit assessments
- Financial health alerts
- Credit limit recommendations
- Portfolio risk reports
Debt Collection Support
Many insurers provide professional debt recovery services, which improves your chances of getting paid before you even need to file a claim.
- Professional collections
- Legal recovery assistance
- Cross-border collections
- Mediation support
Financing Enhancement
Insured receivables make stronger collateral. That means trade credit insurance can help you get better financing terms from your bank or lender.
- Improved borrowing capacity
- Better lending terms
- Receivables as collateral
- Lender confidence
Risk Awareness
Common Trade Credit Risks
These are the situations that put your accounts receivable at risk, and where trade credit insurance steps in.
Customer Bankruptcy
When a major buyer files for bankruptcy, you may never recover what they owe. That leaves a real hole in your balance sheet.
Example: Your largest customer files for creditor protection owing you $250,000. Trade credit insurance covers the loss up to your policy limit.
Prolonged Non-Payment
Some customers don't go bankrupt. They just stop paying. Months of unpaid invoices can cripple your working capital.
Example: A buyer's invoices are 120 days overdue with no response. Protracted default coverage triggers, and you receive an indemnity payment.
Customer Concentration
If a large percentage of your revenue comes from a few key accounts, losing even one can be devastating.
Example: One customer accounts for 30% of your revenue. They default. Trade credit insurance covers the shortfall so your business survives.
Export & Political Risk
Selling internationally adds currency, regulatory, and political risks that are outside your control.
Example: A foreign government freezes currency transfers. Your buyer can't pay despite wanting to. Political risk coverage responds.
Industry Downturns
Economic slowdowns hit entire sectors at once. Multiple customers may struggle to pay simultaneously.
Example: A sector-wide downturn causes three of your buyers to default in the same quarter. Trade credit insurance absorbs the losses.
New Customer Risk
Extending credit to new customers is how you grow, but you have limited visibility into their financial health.
Example: You win a large new account and extend net-60 terms. The buyer defaults after the first shipment. Your trade credit policy covers the receivable.
How It Works
How Trade Credit Insurance Works
Here's how it works, from setup to getting paid on a claim.
1. Submit Your Buyers
Provide your customer list and sales data. The insurer assesses each buyer and sets credit limits.
2. Sell on Credit
Continue selling on your normal terms. Each qualifying invoice is automatically covered under the policy.
3. Report Non-Payment
If a buyer fails to pay, notify your insurer. They initiate collection efforts on your behalf.
4. Receive Indemnity
If the debt is unrecoverable, the insurer pays your claim, typically 80 to 95% of the outstanding invoice.
Get Answers
Frequently Asked Questions
Common questions about trade credit insurance in Canada.
Trade credit insurance protects your accounts receivable. If a customer cannot pay due to insolvency, bankruptcy, or prolonged default, the insurer indemnifies you for the covered amount — typically 80–95% of the outstanding invoice.
Any business that sells goods or services on credit terms — manufacturers, distributors, wholesalers, exporters, and B2B service providers. It is especially valuable when you have large receivables, concentrated customer accounts, or international buyers.
It covers buyer insolvency (bankruptcy, receivership), protracted default (invoices unpaid beyond a threshold), and — for exporters — political risk such as currency restrictions or government payment moratoriums.
Premiums are typically a fraction of a percent of your insured sales — often between 0.1% and 0.5% depending on industry, buyer quality, and coverage scope. We can get you a quote based on your situation.
Policies can cover your entire receivables portfolio (whole turnover) or specific key accounts (named buyer). The insurer assesses each buyer and assigns credit limits.
With factoring, you sell your invoices at a discount. With trade credit insurance, you keep your receivables and collect payment yourself — the insurer only pays if the buyer defaults. You retain the customer relationship and full invoice value.
Yes. Banks view insured receivables as higher-quality collateral. Many lenders will increase your borrowing base or offer better rates when your receivables are covered by a trade credit policy.
Yes. Trade credit insurance can cover domestic and export sales. Export policies add political risk coverage for situations like currency transfer restrictions, import licence cancellations, and government-imposed payment moratoriums.
Protracted default means the buyer has not paid within a set number of days past the invoice due date — typically 90 to 180 days — and has not formally declared insolvency. The policy treats this extended non-payment as a covered loss.
After you file a claim and the waiting period passes, insurers typically pay within 30 days. The exact timeline depends on your policy terms and the complexity of the claim.
Related Coverages
You May Also Need
Businesses that carry trade credit insurance often pair it with these coverages for complete protection.
Protect Your Receivables Today
Trade credit insurance for businesses in Vaughan and across Canada (except the Province of Quebec). Don't let unpaid invoices put your business at risk. across canada (except the Province of Quebec)
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