The precise documentation needed to support a credit insurance claim can vary based on the insurer and the specific reason for the claim. However, here’s a broad category breakdown of the types of documents you’ll likely need:

1. Evidence of Debt and Loss:

• Invoices: Copies of the unpaid invoices detailing the goods or services provided and the amount due.
• Contracts or Purchase Orders: Demonstrates the existence of a binding agreement between you and the buyer.
• Payment History: Records of any past payments, highlighting the overdue status of the current debt.
• Collection Efforts: Correspondence with the buyer, including emails, letters, and collection notices, demonstrating your attempts to recover the debt.

1. Proof of Insolvency or Protracted Default:

• Insolvency Filings: Official documents like bankruptcy notices, receivership orders, or liquidation announcements.
• Financial Statements: Recent financial statements or credit reports indicating the buyer’s financial distress.
• Dishonored Payments: Evidence of bounced checks, reversed electronic payments, or other payment failures.
• News Articles or Public Announcements: Documentation of plant closures, lawsuits, or negative news that supports the buyer’s inability to pay.

1. Supporting Documentation:

• Shipping Documents: Proof of delivery or service completion, such as bills of lading or signed delivery receipts.
• Correspondence with the Buyer: Emails or letters discussing payment issues, disputes, or acknowledged financial difficulties.
• Credit Reports: Credit reports from credit bureaus highlighting the buyer’s deteriorating creditworthiness.
• Industry Reports: Reports or news indicating economic downturns or industry-specific challenges impacting the buyer.

1. Policy-Specific Documents:

• Your Credit Insurance Policy: To verify the specific coverage terms and claim requirements.
• Claim Forms: Any forms provided by your insurer for initiating a claim.

Tips:

• Organize Your Records: Meticulous record-keeping throughout your business dealings will make the claims process much smoother.
• Over-Document: Gather as much evidence as possible to support your case. Even details that seem minor initially might be valuable later.
• Consult Your Insurer: Your credit insurer can provide a list of documents specifically required for your claim type and clarify any questions you have.