The Call That Changed Everything

Why Having a Trade Credit Insurance Specialist Matters - A Real-World Lesson

How critical it is for companies to have expert guidance when it comes to trade credit insurance?  I worked with an aerospace products company that had held a credit insurance policy for six years—purchased directly from an insurer, without a broker. When they filed their very first claim, it was denied. And just like that, they were facing a potential $450,000 USD loss.

That's when they reached out to me.

The Call That Changed Everything

When the company contacted me, they were understandably upset. After years of paying premiums, their claim had been denied, and they didn’t fully understand why. They appointed me as their Broker of Record, which gave me the ability to investigate the situation on their behalf, communicate with the insurer, and (if needed) help them find a better policy elsewhere.

What I uncovered wasn’t uncommon—but it was preventable.

Over the six years they held the policy, people had come and gone on both sides—at the company and within the insurer’s underwriting team. The result? There was no longer a working relationship between the two parties. Worse, the policyholder no longer understood what their policy actually covered, and the insurer wasn’t aware of how the company’s operations had evolved over time.

This breakdown in communication and understanding ultimately led to the claim being denied.

Finding the Middle Ground

Once I identified the underwriter involved, I initiated a series of conversations. I explained how the client’s business worked, what the intent behind the coverage had been, and how both parties had contributed to the misunderstanding.

After honest dialogue and some back-and-forth, we reached a resolution: a settlement of $300,000 USD. Not quite the full claim amount, but a meaningful recovery—and a fair one, given the circumstances.

But the story didn’t end there.

The Hidden Cost of Misunderstood Coverage

During my review, I also analyzed the client’s policy history and discovered that they had been paying premiums for coverage they weren’t actually receiving. This wasn’t due to bad faith—it was simply a case of not understanding the product they had purchased.

With the help of current staff, I presented this to the insurer, who agreed to refund $90,000 USD in premiums that had been paid for coverage the client never received.

Between the settlement and the refund, the client walked away with a much better outcome than they ever expected.

The Role of the Specialist Broker

This case is a textbook example of why working with a specialist broker makes all the difference.

As a trade credit insurance broker, my job isn’t just to sell a policy—it’s to:

• Understand your business

• Ensure you get the right coverage

• Maintain ongoing relationships between you and your insurer

• Step in when things go wrong

  
  

And here's something a lot of companies don’t realize: there’s no cost to the client for using a broker. We’re paid a commission by the insurer, not the policyholder. That means companies can have expert support and advocacy without paying extra.

A Happy Ending—and a Better Beginning

Interestingly, after shopping the risk to other insurers and getting multiple quotes, we found that the original insurer—with changes to the policy and better communication—was still the best fit. So the client stayed with them.

Today, I continue to serve as their broker of record, meaning I’m looped in on all communication and any changes to the business or the policy. I ensure the policy remains relevant, and that both parties stay informed and aligned.

Because in trade credit insurance—as in most things—relationships matter.

Lessons Learned

If there’s one thing I hope companies take away from this story, it’s this:

Insurance is complicated. Trying to go it alone can cost you more than just time—it can cost you real money.

By bringing in a specialist broker early on, you gain a partner who knows the language, the market, and how to get things done when it matters most.

If your company has trade credit insurance—or is considering it—I encourage you to reach out. Even if you think everything is fine, a quick review might reveal ways to improve coverage, reduce costs, or avoid potential pitfalls down the line.

Thanks for reading, and as always, trade securely.

Mark Hall is Vice President of Credit Insurance at Elevate Global Insurance and a long-time member of the Receivables Insurance Association of Canada (RIAC).