Bad Debt Protection insurance

You can protect your business against this risk by purchasing bad debt protection.

Bad Debt Protection for Small Business

Non-payment can be a significant risk for small companies trading on credit terms. You can protect your business against this risk by purchasing bad debt protection.

Aon’s bad debt protection solution* has been specifically designed for small companies to protect against non-payment of trade debt.


How does it work?

how does trade credit work


What are the benefits of bad debt protection?

  • Peace of mind from non-payment cover when trading on credit terms
  • You can reduce your bad debt provision
  • You may be able to access improved working capital finance using the security of the policy
  • Supports good corporate governance
  • Provides security for trade with new customers and markets
  • Debt collection support

What does our solution offer?

An annual policy covering domestic and export sales if your customer becomes insolvent up to pre-agreed maximum limits.

  • Claim up to 65% of invoice value
  • If using optional credit recommendations through our online status information portal Aon Trade Link**, claim up to 85% of invoice value

  • Minimal policy administration
  • 10 free ‘final demand’ collections letters
  • Export cover includes free collections of delinquent insured customers, and you can claim for non-payment if the debt remains unpaid 4 months after due date

How Aon can help you

Aon’s bad debt protection solution* has been designed for small and micro UK businesses. The cover is for insolvency of your customer (UK) and non-payment and insolvency (export). The maximum exposure to any one customer is £25,000, but can increase to £50,000 subject to receipt of an approved credit recommendation on your customer from D&B, Graydon, Equifax or Experian via Aon Trade Link. Optional credit recommendations are available on a pay as you use basis from Aon Trade Link. If you already have protection through invoice finance, we will review if having your own policy will provide enhanced cover. We can put you in touch with providers of working capital finance that grows and recedes according to your business flows.

Aon Trade Link

Aon’s secure online system Trade Link provides quick and easy access to a range of UK and international business information and monitoring tools on a pay as you use basis

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* Aon’s bad debt protection solution for small businesses is provided by and underwritten by Atradius. ** All amounts exclude VAT. Standard indemnity is 65%. This increases to 85% if you obtain a credit recommendation that exceeds your requested credit limit from D&B, Graydon, Equifax or Experian purchased through Aon Trade Link.

FP ref: FPACI.21.07.16