Thousands of Australian businesses use trade credit insurance in Australia and New Zealand. One of the critical elements required under a trade credit insurance policy is to have your customers ‘endorsed’ by your insurer at the level of trade you require.

At times, due to many factors, a single insurer may not be able to meet the level of requirement for the full credit limit requested. This leaves a business exposed or unable to close an important sale due to credit level requirements.


So what options are available to an insured to close the gap?

The most common approach is for an insured to trade over and above the credit limit insured. Not the perfect solution, but, at the same time allows the bulk of the trade to be covered or in the event of an insolvency, still have the majority of their debt covered.

Alternatively, some insurers offer caps or additional cover via an alternative product at an additional cost.

Now for the first time in Australia, there is a new offer for consideration. Top-Up cover. Underwritten by Lloyds syndicate, Equinox, the aim is to close the gap between the insured cover and the outstanding exposure.


So how does it work?

By providing a spread of your aged trial balance and credit limits required, we identify the gaps and exposure you may wish to consider TopUp cover for. In consultation with your primary insurer, NCI first endeavours to seek the higher cover with the primary. However, if this cannot be met, an alternative Top-Up cover indication can be provided.

Businesses in Europe have been using TopUp cover for many years. Quite often these types of initiatives and solutions take some time to come into the Asia Pacific market. However, now with the ability to top up your primary cover, the solution now exists in local markets for insureds to consider.

In NCI’s latest customer survey, there were two areas highlighted for upcoming challenges in 2019. The first issue was getting paid on time, the second was finding cover to meet their needs. We are hoping the Top-Up cover can support clients in reducing the cover challenge.

So, if you hold a trade credit insurance policy and have under-insured limits, perhaps a Top-Up solution can assist you in closing the gaps on your cover requirements.


  • Kirk Cheesman
  • Managing Director
  • National Credit Insurance Brokers
  • P:1300 654 500
  • E:
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