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Credit Insurance

See the brochure for full details and recent program enhancements!

Most companies insure against every other unpredictable event that has a potential for loss….property, liability, director’s & officers, errors, business interruption…but have no insurance against excessive credit write-offs. This risk continues to be prevalent due to:

  • As the price of electricity continues to rise, there is greater risk of payment defaults.
  • Close to 75 % of all payment defaults arise from clients with whom stable and long-term trade relationships have been established.
  • Many LDCs have high exposure to a single customer or a concentrated group of customers. A default of payment by one customer could significantly impact revenues.
  • Insurance premiums are more easily recoverable through rate submissions versus bad debt expenses.

Credit insurance, also known as accounts receivable insurance, is designed to provide protection against unexpected losses due to insolvency or overdue payments on the part of commercial customers. Credit insurance eliminates the risk and increased costs associated with managing a business. It offers many enhanced features that add value to the receivables management process. The program helps your credit department run more efficiently, saving time, money and effort – it’s like adding a financial analyst to your credit management practices!

Credit insurance is recognized by the OEB as an integral part of good credit and collection practices. Use it to reduce and replace bad-debt reserves with insurance premiums that are tax-deductible and recoverable in rates:

  • Better credit control and protection against unforeseen bankruptcies and catastrophic bad-debt losses
  • Designed specifically for LDCs, the program includes with valuable coverage unavailable elsewhere in the market
  • Tools made available through this program can be used for better risk management through an “early warning system”
  • Better business planning though the elimination of unknown risks
  • Improves cash flow - you receive payment for unpaid accounts receivables that are insured
  • Online policy management system makes program administration simple and convenient
  • Simplifies LDC rate submissions through demonstration of proactive credit management


MEARIE has partnered with Euler Hermes Canada to create this program for LDCs. Euler Hermes is the original provider of credit insurance.

For more information on all aspects of the MEARIE Credit Insurance program, and recent program enhancements, Download the Credit Insurance Brochure (PDF)