Thanks to your trade credit insurance policy, you’ll know when a sale becomes risky: That’s because if the risk of default increases, Allianz Trade has to take preventive measures, which may include restricting or reducing the cover limit or refusing cover completely. What do you do then? Your business can accept the order at its own risk, agree special terms with the customer such as down payments, or decide not to do business – there are no satisfactory options. Allianz Trade offers you better solutions: With our CAP and CAP+ top-up cover, you can add to your existing credit insurance so that higher-risk sales remain covered.
Without CAP
You have no cover for sales with a higher risk of default.
Move the Blue slider , to learn how CAP can help you minimise the gaps in your insurance cover
With CAP
Your customer relationships remain unaffected when a trusted business partner gets into difficulty.
Allianz Trade CAP
increases your protection when a sale exceeds the cover limit available under your “normal” insurance cover. CAP top-up cover can double the cover limit up to a maximum of CHF 3 million (EUR 2.5 million or USD 3 million).
Allianz Trade CAP+
is the right solution if a credit request for a new customer under your main Allianz Trade policy has been rejected. If this happens, you can obtain CAP+ cover up to a maximum of CHF 75,000 (EUR 50,000 or USD 75,000).
Transparent costs
Because the default risk is significantly higher, beyond the scope of your normal insurance cover, higher costs arise. You only pay premiums for the top-up cover you specifically select. These premiums are calculated as follows:
- CAP: 2% of the additional cover limit p.a. (≈ 0.17% per month)
- CAP+: 6% of the cover limit p.a. (= 0.5% per month)
- Minimum premium: three months, thereafter monthly billing
- Monthly billing: Whole calendar months are always charged on the basis of the highest cover limit in force during the month in question.
Flexible and easy to use
Allianz Trade CAP and CAP+ are essentially governed by the terms and conditions of your existing trade credit insurance policy. And with the extra protection, you always remain flexible: with us, you can decide how much additional protection you need and how long you need it for – there is no minimum cover limit.
Request or cancel CAP and CAP+
You can easily request or cancel CAP and CAP+ cover using our EOLIS online service. Requests and cancellations work the same way as for “normal” limits, except that they are processed under the CAP/CAP+ policy numbers set up in EOLIS. When making a cover request, you can set a time limit for your cover via the comment field (n.b. the minimum term is always 3 months). If no time limit is entered, your top-up cover stays in place until you cancel it.
What general conditions have to be met to obtain CAP cover?
In general, CAP and CAP+ cover limits can be granted for customers in EH grades 1-8. Exceptions are made for customers for whom a claim has been reported during the last 24 months or for whom an undisputed overdue receivable has occurred in the last 12 months. Customers in “D” countries are also excluded from top-up cover. In addition, Allianz Trade may possess confidential information that causes it to decline top-up cover.
Benefits at a glance:
- Supplementary protection for sales with a higher default risk that are not covered by your main policy
- Existing customer relationships remain unaffected even in difficult situations; new sales can still be made even if risk has increased
- Length of additional cover can be flexibly selected
- Quick credit decisions via Allianz Trade’ easy-to-use EOLIS online service
- Transparent cost calculation, monthly premium calculation
- Additional premiums are only incurred for the specific risks you select
CAP/CAP+ FAQ
How do I request or cancel a CAP/CAP+ limit?
You can request or cancel CAP and CAP+ cover easily and conveniently via our EOLIS online service. See the Requests and Cancellations section.
Can CAP/CAP+ limits be cancelled?
CAP/CAP+ limits can usually be reduced or cancelled at any time. They will always be reduced or cancelled if the underlying primary limit is cancelled.
Why should I pay even more, when my company has already taken out trade credit insurance with Allianz Trade?
Normal trade credit insurance can only cover receivables up to a certain default risk. That’s why Allianz Trade checks every credit request and responds to the risk situation, so that you can act accordingly. Allianz Trade has designed CAP and CAP+ cover especially so that it can continue, with the help of reinsurers, to help your company even if the risks increase.
Isn’t that pretty expensive?
Premiums for CAP and CAP+ are obviously higher than for normal trade credit insurance, because of the significantly greater risk to Allianz Trade. But you only pay for transactions that need extra protection – and only for as long as it’s needed.
Why shouldn’t we just refuse to do business if our trade credit insurance won’t provide full coverage?
For example, because an existing major customer has run into difficulties. Or because of an attractive new business opportunity. The only question then is whether you yourself want to bear the risk of default and all the consequences that entails, or instead pay a modest premium to do good business without the worry.