All the facts about your premium calculation
The factors we consider when calculating your premium rate include:
- Which sectors do your customers operate in?
- How high is the insurable turnover?
- Which countries do you deliver to?
- How many bad debts have you suffered in recent years?
- What payment terms have you agreed with your customers?
Your premium is calculated on the basis of your company turnover – excluding sales to public authorities at state, federal or municipal level and to your own branch offices and subsidiaries. A premium rate reflecting your individual risk situation is then applied to your insurable turnover. The insurance premium thus calculated is only a fraction of a percentage point of your turnover.
Example of premium calculation for large companies.
Turnover (of the last financial year): EUR 23 m
./. D/P transactions: EUR 0.5 m
./. Irrevocable letters of credit: EUR 0.25 m
./. Cash turnover: EUR 0.25 m
./. Turnover with public authorities: EUR 5 m
./. Turnover with subsidiaries: EUR 3 m
= Insurable turnover: EUR 14 m
e.g. 0.23% premium on which = EUR 32,200
Premium: dependent on your customer structure and risk situation, plus insurance tax.
Let us calculate your personal premium. Our staff will be happy to assist you.
Let us calculate your personal premium. Our staff will be happy to assist you. By entering your German local area code into the input-field you get the address of a client service near you.
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Euler Hermes Group
