Debtors Insurance – also known as trade credit insurance – is designed for livestock agents and agency businesses whose income depends on buyers paying for stock after sale. It protects the commissions and sales proceeds your agency is entitled to when a buyer becomes insolvent, disputes the debt or simply fails to pay within agreed terms.
For rma network Members, Debtors Insurance sits alongside your existing farm, business and professional cover to close a gap that traditional policies don't address: the financial exposure created between the fall of the hammer and the buyer's payment clearing your account.
What it covers
- Buyer insolvency – payment shortfall when a buyer becomes bankrupt, enters administration, liquidation or a formal insolvency arrangement.
- Protracted default – buyers who remain unable or unwilling to pay beyond agreed terms, even without a formal insolvency event.
- Commission and sales proceeds – cover extends to the agency's commission entitlement as well as the amount owed to the vendor, subject to policy terms.
- Political and transit risks – where relevant, cover can extend to export sales affected by government action or currency restrictions.
Why livestock agents use it
- Protects agency cashflow when a single large buyer default could threaten a season's margin.
- Supports credit decisions with insurer-backed buyer intelligence, letting you extend terms with confidence.
- Strengthens vendor relationships by reducing the risk that sale proceeds are held up or lost after settlement.
- Can be structured to cover your whole ledger, key accounts, or single large transactions.
How the policy is structured
Debtors Insurance policies are underwritten on the strength of your ledger and the creditworthiness of your buyers. The insurer sets credit limits per buyer, and claims are payable when an insured buyer fails to pay within the policy's waiting period. Premium is typically based on turnover, ledger profile and industry risk.
RMA Insurance Brokers works with specialist trade credit insurers to structure a policy that matches your agency's size, buyer mix and appetite for retained risk. This is not a standard off-the-shelf cover – the policy wording, credit limits and excesses are shaped around your business.
Next steps
If you'd like to review whether Debtors Insurance is right for your agency, contact RMA Insurance Brokers on 1300 650 254 or submit a member enquiry. We'll walk through your current exposure, review a sample ledger, and provide indicative terms from the market.