The 18% rise in the number of business insolvencies last year should act as a warning to all organisations to protect their bottom lines, says major broker Marsh.

The number of insolvencies grew to 10,404, according to the latest Australian Securities and Investments Commission figures.

Marsh says recent improvements in trade credit insurance are providing businesses with much greater flexibility.

QBE says pricing on trade credit insurance is at historically low levels, telling insuranceNEWS.com.au it is “increasingly affordable” across all industry sectors.

“Trade credit insurance is a tailored solution product that provides our policyholders with peace of mind,” GM Credit and Surety John Sutherland said. “The current economic climate and vulnerability in global and financial markets means this is an additional part of risk management strategy.”

Marsh says a business might be able to choose to protect the debts of a single customer if the client operates in a sector that could suffer a substantial decline as a result of any significant downward economic trend.

“It may also be possible to cover a portion of all the business’ outstanding debts.”

The broker says further policy innovations are likely, with brokers best placed to find the right solutions for businesses.

“Trade credit insurance can be complex, and ensuring the right balance between cost and cover requires a special skill set,” it says.

“It’s worth working with a specialist broker with extensive experience in this area to ensure the business receives competitive and comprehensive insurance cover.”

Mr Sutherland agrees, saying QBE is “working to improve our customer experience and become even more innovative so we can tailor new products and solutions at affordable prices to meet the changing needs of our clients”.