{"id":21423,"date":"2023-07-20T14:55:42","date_gmt":"2023-07-20T12:55:42","guid":{"rendered":"https:\/\/creditdevice.com\/how-to-avoid-losing-money-unnecessarily-by-insuring-not-just-one-but-all-of-your-debtors\/"},"modified":"2024-12-11T13:45:37","modified_gmt":"2024-12-11T12:45:37","slug":"how-to-avoid-losing-money-unnecessarily-by-insuring-not-just-one-but-all-of-your-debtors","status":"publish","type":"post","link":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/blogs-and-news\/blog-en\/how-to-avoid-losing-money-unnecessarily-by-insuring-not-just-one-but-all-of-your-debtors\/","title":{"rendered":"How not to lose money unnecessarily by insuring not just one, but all your debtors"},"content":{"rendered":"<p>It is a dilemma for many an entrepreneur: should you insure all your <a href=\"https:\/\/cd-wordpress.creditandcollection.nl\/hoe-je-niet-onnodig-geld-verliest-door-niet-een-maar-al-je-debiteuren-te-verzekeren\/\">debtors<\/a> or only the high-risk ones? For an entrepreneur, it is often clear which customer is more likely to have an unpaid invoice. It therefore sounds logical to insure only those high-risk customers. The experts at CreditDevice explain why that is not wise.   <\/p>\n<p>If there is any insurance you can go either way with, it is credit insurance. That makes it a completely different type of insurance than corporate liability insurance or legal expenses insurance. Those are much more static; you take them out and they can remain unchanged for years. With credit insurance, there are also different forms, kinds and types.   <\/p>\n<h2>One versus all debtors<\/h2>\n<p>One of the most important questions is which debtor or debtors you insure. There are roughly two options: <\/p>\n<ul>\n<li> With a <b>turnover policy<\/b> , you insure all debtors. Incidentally, this type of insurance offers a choice of flavours, depending on the type of business and the needs of the organisation.  <\/li>\n<li> A <b>single risk policy <\/b>allows you to insure one particular risk. <\/li>\n<\/ul>\n<p>A single risk policy allows you to insure one particular debtor , for example. Or a few. Such insurance is therefore also called a debtor policy. But you can also insure debtors from one particular country . Even insuring one transaction is possible, for instance when you receive a large amount from one customer.    <\/p>\n<h2>Here&#8217;s the catch<br \/>\n<\/h2>\n<p>This sounds interesting and attractive, but there is a catch. &#8220;Compared to a turnover policy where all customers are insured, single-risk policies are relatively expensive,&#8221; says Hans-Peter Vloemans, Managing Director at CreditDevice. Sales manager Sian Houwaart also advises his clients against the single-risk policy. &#8220;I would not do that,&#8221; he explains, &#8220;because the risk is not well spread.&#8221;   <\/p>\n<h2>The principle of insurance in 1 minute<br \/>\n<\/h2>\n<p>It is about spreading risks. For the relationship between risk and premium, we need to dive a little further into the theory behind insurance. But don&#8217;t worry, it won &#8216;t be tough.  <\/p>\n<\/p>\n<p>You take out insurance for an event that you hope will never happen, but there is a chance it will. For that small chance , you insure yourself. Especially if there is a big impact. For example, that the customer is so big that you cannot bear it when that customer does not pay. In short: small chance, big impact. Opposite: big chance, small impact. Once it is no longer really a question of whether something happens and it is almost a certainty, then it is no longer insurance.       <\/p>\n<h2>Why you actually have a dental subscription<br \/>\n<\/h2>\n<p>It is precisely for this reason that dental insurance is increasingly being discussed. After all, it is not a question of whether you go to the dentist; for most Dutch people, the visit twice a year is a given. A dental insurance is then actually more like a dental subscription.  <\/p>\n<\/p>\n<p>It worksno differently with <strong><a href=\"https:\/\/cd-wordpress.creditandcollection.nl\/kredietverzekering-alles-wat-je-moet-weten-over-het-afdekken-van-het-risico-van-onbetaalde-facturen\/\">credit insurers<\/a> <\/strong>; they too want to spread risks. &#8220;With single risk policies, the risk for the insurer is high&#8221;, explains Vloemans. Houwaart: &#8220;If the probability is higher, insurers have to factor that in. &#8221; Resulting in a higher premium for you as a business owner.&#8221;   <\/p>\n<p>Moreover, according to Vloemans , it is a misconception that new customers are riskier. &#8220;Statistically , bankruptcies are more common with existing customers you have been doing business with for years than with new, uncertain customers.&#8221; <\/p>\n<h2>This is how you keep the premium low<\/h2>\n<p>The most important knob to turn if you want to keep your premium low: spread risks . &#8220;So by insuring all your debtors, because there are also healthy debtors among them&#8221;, says Vloemans. All debtors means your entire turnover. Houwaart: &#8220;That generally makes the turnover policy the best credit insurance.&#8221;    <\/p>\n<\/p>\n<p>For tailor-made advice, entrepreneurs can contact specialist brokers or the credit insurer itself. To make managing a credit insurance policy easier , CreditDevice has developed the PolisManager. Would you like to know more about this? Contact us now with no obligation.   <\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is a dilemma for many an entrepreneur: should you insure all your debtors or only the high-risk ones? For an entrepreneur, it is often clear which customer is more likely to have an unpaid invoice. It therefore sounds logical to insure only those high-risk customers. The experts at CreditDevice explain why that is not wise.   <\/p>\n","protected":false},"author":4,"featured_media":15270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"page_builder":"","footnotes":""},"categories":[297],"tags":[285],"alle-categorieen":[],"blogs-nieuws":[],"class_list":["post-21423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en","tag-policymanager"],"_links":{"self":[{"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/posts\/21423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/comments?post=21423"}],"version-history":[{"count":0,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/posts\/21423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/media\/15270"}],"wp:attachment":[{"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/media?parent=21423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/categories?post=21423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/tags?post=21423"},{"taxonomy":"alle-categorieen","embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/alle-categorieen?post=21423"},{"taxonomy":"blogs-nieuws","embeddable":true,"href":"https:\/\/cd-wordpress.creditandcollection.nl\/en\/wp-json\/wp\/v2\/blogs-nieuws?post=21423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}