Insurance jargon can be confusing, so this article explains the different kinds of insurance policies and cover, and how Nimbla can fit in with existing credit insurance.
What is an insurance ‘Limit’?
Sometimes insurers 'sell out' of insurance policies on a business or sector. This doesn't necessarily mean that the business or sector is high risk. The insurer has simply sold so many policies on the business or sector that selling any more could leave them overexposed to risk should the worst occur.
If your business needs more cover on a customer, you can ask Nimbla to increase a limit. We'll respond promptly and do our best to raise the limit for you.
What is ‘Top-up' insurance?
'Top Up' insurance is when a customer sources extra cover from another provider, ‘Topping Up’ their existing policy.
Can I use Nimbla to top-up a Limit?
No. If you have an active limit in place with your main insurer, Nimbla cannot offer additional cover.
What is ‘Bad Debt Protection’?
‘Bad Debt Protection’, abbreviated to BDP, is provided by funders and their customers to protect both parties against loss. A bit like a 'whole turnover' policy, if you purchase BDP from your funder, you and your funder will normally be jointly insured, although the policy belongs to the funder. This joint policy allows either party to make a claim in the event that the other is unable to fulfil its obligations.
Can I use Nimbla alongside Bad Debt Protection?
Yes, provided that you do not already hold an active limit on a customer, you can insure invoices that are not already covered by your existing Bad Debt Protection policy (checking that your funder will still fund your invoice/s is a good idea though).