Glossary and business terms

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A written declaration by a financial institution (bank or insurer) that covers the beneficiary for a certain percentage of the primary contract in case there is a default in the execution of the contract by the debtor. ​​


An independent intermediary who canvasses companies in order to offer them a credit insurance policy or factoring agreement. Brokers advise policyholders during the implementation of the policy or agreement and in its day-to-day administration. ​


Situation in which a risk is realized. This entitles the policyholder to compensation and triggers the compensation mechanism provided for in the credit insurance policy​

Credit insurance

A technique whereby a company protects itself against the risks of non-payment of its trade receivables.​


Legally recognized incapacity of the debtor to meet his or her commitments and, as such, to pay his or her debts.​


Credit insurance contract between Euler Hermes and the policyholder.​


Amount paid by the policyholder to the insurance company in exchange for risk coverage. A distinction is made between: written premiums: the amount billed dur​ing the period to cover the risks under the contract; and earned premiums: the portion of the premium written during the period or earlier corresponding to the coverage of risks during the period concerned.​​


Process by which the policyholder may, based on information provided by Euler Hermes on the solvency of its customers, select its customers and reduce its own losses.​

Proprietary information

Information prepared by Group companies and owned exclusively by Euler Hermes. It is a guarantee of the service quality offered to its clients.​

Receivables management

Suite of services offered to companies aimed at ensuring the collection of receivables after invoicing to the debtor and up to the litigation phase, where applicable.​

Sums recovered

All collections after indemnification, when the insurance company takes over the policyholder’s rights to receivables that are insured and have been indemnified.​