How does insurance work?

  • Calculate the expected amount of the insurance premium and pay the application fee. After examining the buyer’s background, we will send you an insurance contract. Pay the insurance premium.
  • Dispatch the goods or start providing the service to the buyer. It is important to issue an invoice with a due date.
  • If the buyer fails to pay the invoice by the agreed due date, the extended payment term begins. During this period, you will have to communicate actively with the buyer and send reminders concerning payment. When the extended payment term begins, the insurance coverage no longer extends to further deliveries and you will have to send a non-payment notice to AS KredEx Krediidikindlustus within 15 days. Also inform AS KredEx Krediidikindlustus if you have received any negative information about the buyer, for example that bankruptcy proceedings have been initiated against the buyer.
  • When the non-payment notice has been given, a third party – the insurance company or a collection company – must be involved in the collection process. During the agreed period (usually 6 months after the due date), the debt will be collected with the help of the collection company. If the buyer still fails to pay or goes bankrupt during this period, it is an insured event. You can then apply for an insurance indemnity from the insurance company.
  • The insurance company will review the application for the insurance indemnity and make a decision within 30 days after receiving all the necessary documents. The insurance indemnity will be paid within 15 days.