A True Story about Atypical Insurance Coverage
Here’s an interesting story that Prime Insurance’s Laizer Schonbrun tells.
Businesses are accustomed to acquiring fire, liability and other common coverages. But for some industries, there is a need for a form of protective insurance they may never have realized even existed, says Laizer.
For no reason other than enlightening a client about the varieties of insurance out there and how PRIME Insurance is always looking out for the customer’s full protection, Laizer approached a businessman whose father had once worked as a distributor in Ohio and told him about credit insurance.
For a distributor that relies on payment to purchase goods but extends credit to vendors, the possibility of non-payment is a frightening scenario. The notion that a business can be reimbursed by an insurance company if credit extended to a vendor is not paid due to bankruptcy or other factors can shield a distributor from business disruption or a complete shut-down by having bills paid through the claims process. In addition, among other benefits the coverage allows a business to:
- Sell more to current customers and grow the business by pursuing other customer relationships – even those that seem uncertain due to pay-back risks
- Develop new customer bases
- Free up business funds
- Receive better lending conditions from financial institutions
- Get tax deductions for the insurance premiums
- Utilize credit insurance information and risk management to help prevent credit losses
Laizer’s client was so taken by the idea, that he referred another distributor who happened to live in Ohio to Prime. The distributor who was rightfully fearful about late payments or complete non-payments in relation to his businesses’ cash flow sat down to discuss if the credit insurance would be a right fit for his international commercial activities. After a review of the man’s business in relation to the benefits to credit-risk management, fiscal opportunities, and peace of mind in the event of losses inherent to his company, the distributor acquired a credit policy tailored to his needs.
Laizer Schonbrun can be reached at Laizer [at] primeins [dot] com or at 732-886-5751, ext. 205.
Prime Insurance Agency provides all forms of competitively lowest quote coverage for NJ, NY, PA, TX, FL, OH and other states. Tailored policies include auto insurance, commercial umbrella insurance, flood insurance, renters insurance, homeowners insurance, bonds, workers comp, life insurance and more. We invite you to experience what thousands of our satisfied customers vouch for - the PRIME excellence. Contact us via online insurance website, our email: PRIME [at] primeins [dot] com or by phoning - 732-400-5242.
Summary: Credit insurance can save the distributor from financial losses due to customer nonpayment. Here, Prime Insurance explains the coverage in clear easy-to-understand language.