The usefulness of collection insurance.
A client who doesn't pay his invoice: many self-employed people lie awake at night because of it. Why doesn't he pay? And how do you solve this neatly? After all, you desperately need the money yourself to pay your bills! Fortunately, legal expenses insurance also has debt collection coverage. That gives a lot of peace of mind. In this article you can read about the advantages of this insurance in the SME package.
If you take out legal expenses insurance with Alpina, you can include collection coverage. With this collection coverage, you outsource the collection of your outstanding invoices to your insurer. You can only do this when you are unable to do it yourself. The insurance company tries to get the bill paid, but also provides legal assistance when necessary. At Alpina, you can choose either Business Legal Assistance Insurance or Personal Legal Assistance Insurance.
"When I called in the collection agency, the invoice was paid immediately," we often hear our clients sigh. That's because that third independent party increases the pressure on the customer. They take over the entire process of dunning and payment arrangements from you. Often that is enough to get the bill paid.
A late payment can ruin your relationship with your customer considerably. Nobody benefits from that. You also want to continue doing business with this customer in the future. You also want the customer to recommend your company to his network. That will only happen if the atmosphere remains good. Insurance takes over the collections from you so you can continue to do your job.
Fortunately, late payments rarely lead to a lawsuit. If it does, the costs add up quickly. Does it turn into a settlement? Even then you could use some advice, and that's not free either. For all these costs, you can call on your legal expenses insurance. This insurance is not mandatory, but it is a very good choice for self-employed people and SMEs. Calculate it yourself with Alpina's insurance check.
Questions? Contact us if you want to know more.
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