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Association Of British Insurers @ABI “Q & A” On #tradeinsurance do you have people who owe you? or you them?

By 17th March 2020 No Comments

Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate. This could result from businesses not being able to pay for goods and services delivered as the result of Coronavirus.

Is there any business cover against suppliers going insolvent?

  • Trade credit insurers do not provide cover for loss of production volume or the insolvency of a supplier, only the failure of a customer to pay for purchased goods. It is primarily insurance to cover the potential failure of a customer to pay for goods and services rendered in the event of insolvency or in the event of late payment.

Is my business covered by insurance against delays in payments across the supply chain?

  • Trade credit insurance provides coverage for delayed payments, ensuring that late payments do not put your company under financial strain.

Can I still purchase trade credit insurance?

  • Yes, insurers continue to offer cover for the sale of goods and will provide you with advice and guidance to ensure that you are protected against the failure of customers to pay for goods and services you have supplied.

What if I am trading with a region affected by Coronavirus?

  • Insurers will assess trade on a case by case basis for those countries/regions that are experiencing the most severe impact of the virus. Insurers may set specific conditions or credit levels for such trade.
Tim Kelly

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.