Non-payment and non-delivery insurance for traders

We arrange protection against the risk of non-payment and non-delivery for traders involved in the commodity value chain. Comprehensive structured credit insurance helps our commodity clients secure trade deals quickly and efficiently, while protecting against common industry challenges around risks such as non-payment and contract frustration.

Gallagher is one of the world’s largest insurance brokerage and risk management companies with over 90 years of experience. With our global network of specialists and strong relationships across the insurance market, we can structure bespoke coverage that matches your commercial needs.

What are the risk challenges for traders?

With high volumes and short, often unsecured credit terms, commodity trading firms face a number of risks. Non-payment by a buyer or borrower, or non-delivery/non-performance by a prepaid supplier of goods such as crude oil or refined products, sugar and metals, can have a devastating commercial effect.

This can make having sufficient insurance cover in place vital. Policies can protect you against the wide range of risks and complexities that may occur at any point between the agreement of finance and the delivery of goods.

However, this product is not just about reducing the risk in your existing book of business. As an integral element of a tender, structured credit or political risk insurance can also enable you to secure new commercial opportunities and expand into new territories with the security of financial protection.

If you’re looking to reduce trading risk and increase global opportunities, contact us today.

What cover is available for commodity traders?

Gallagher can cover a range of operational, trading and corporate risks. With our network of insurers, we can arrange a level of protection that is suited to your needs. With pre-agreed policy wordings that are widely accepted in the market, we can place new non-payment and non-delivery covers with speed and efficiency while trying to keep your premiums low. We can also tailor insurance contracts to your specification to dovetail with cargo, property and stock-throughput programs, closing gaps and avoiding duplication.

We can also arrange cover to protect against damage or loss to your commodity stocks in storage or in transit due to political events such as government confiscation, war or terrorism.

Get in touch to allow us to tailor cover to your needs.

Managing transferred credit risk from banks

As well as providing insurance directly to traders, we also have extensive experience of providing protection for financing banks. This is typically taken out to transfer risk to the insurance market when seeking to distribute instruments such as guarantees, confirmed letters of credit and payment undertakings.

Why choose Gallagher?

We represent a number of highly respected corporates across the commodity trading spectrum, largely in the energy and soft commodity markets. Combined with our experience of the financing structures that support such activity, we are ideally positioned to help you face the future with confidence.

We have access to the full range of insurers underwriting structured credit and political risks both in London and internationally. Using our market knowledge and the expanding electronic trading platforms available, we can respond quickly to provide the cover you require.

Read more about The Gallagher Way.

Insurance for Commodity Traders

  • Bespoke and pre-agreed cover options to help you trade for quoting speed and placement efficiency
  • Access to London and international insurance markets
  • Our dedicated in-house claims team has extensive experience of managing and settling commodity-related claims
  • Committed to delivering excellence.