How does an insurer decide on the risk of a company making a claim?

At the start of a policy, the insurer will assess the creditworthiness of the business’ customers and then give each of them a specific credit limit, which is monitored regularly. This is the amount the insurer would cover if that customer cannot pay their debts.

Throughout the policy term, a business can easily request new credit limits or additional coverage on existing buyers or new buyers if necessary. The insurer will then judge the risk of the new coverage, giving the business a detailed explanation for their decision.