Insurance against client failing to pay

[Lewis]

This one is for my plan B.

I just wanted to explore if there are any insurers who would insure your invoices, i.e. if the client refuses to pay (assuming I have done everything right on my part) or goes bankrupt, insurer would pay. (Please dont tell me that insurer would charge the invoice amount+interest as the premium)

I doubt there will be anything like that, however I wanted to check if there are any options like as I mentioned

PCG Plus includes a limited insurance to cover agency default (but it has lots of small print!)

[centurian]

I'm not aware of any insurer that will cover the payment of commercial invoices, it seems unlikely that any such insurance would (if it exists) be at an attractive premium as the commercial risks are insane.

Perhaps not commercial, but AIG sold insurance in the form of Credit Default Swaps - basically insurance against mortgage holders not paying their dues.

I wonder how that worked out...

I'm sure it's available, but I bet it will cost a packet right now.

[TykeMerc]

Perhaps not commercial, but AIG sold insurance in the form of Credit Default Swaps - basically insurance against mortgage holders not paying their dues.

I wonder how that worked out...

I'm sure it's available, but I bet it will cost a packet right now.

A CDS wasn't produced to cover commercial invoices, at least in theory there was an asset supporting the debt , however as we've all noticed that didn't pan out terribly well in the long run.

[Not So Wise]

To me, the agency factoring aspect of the invoices is probably the most valuable part of the contractor/agency relationship.

This.

Actually it is only thing in my mind that justifies their normal rates, which is one of the reasons why I never take a contract with an agency that has stupid terms like pay only after client pays or pay 30 days after invoice because those terms mean agency is getting paid for pretty much nothing. Only way I would accept those terms is with an agency commission of about 1 to 2%

[BrowneIssue]

are you not better off using an agent and spreading the risk?

But when it is the agent that goes bust...