Jobson James supports recent comments by the Association of British Insurers about the need for greater awareness of trade credit insurance, which is proving to be a vital lifeline for many contractors and supplier businesses in an era of large corporate casualties such as Carillion and Toys R Us.
Earlier this week, Mark Shepherd, the insurance sector trade body’s Assistant Director, Property, Commercial and Specialist Lines, said the industry needed to “raise awareness of trade credit insurance”, as “too many firms remain unprotected”.
Trade credit insurance is a highly effective type of insurance cover which protects businesses against non-payment of debts by clients.
Shepherd’s remarks follow news that trade credit insurance pay-outs have reached their highest level since 2009. In 2017, claims paid to businesses as a result of non-payment of debts amounted to £225m, up 7 percent on 2016. With 11,017 claims, insurers helped more than one firm every hour last year.
Shepherd added: “The expertise of trade credit insurers is helping firms navigate challenging trading conditions, enabling them to expand at home and overseas, so helping Britain thrive. With the number of policies rising and insured trade at a record high, more firms are recognising that this cover is an essential business tool to help them assess the credit risk of potential business partners.”
Jobson James’ Divisional Director, Trade Credit and Surety Dean Smith echoed Shepherd’s statement: “It’s amazing how many businesses still aren’t protected in this age of large business failures. And it’s often the case that firms which are tied into contracts expose themselves to risk merely because they haven’t asked their insurer about cover. If you’re supplying a client and notice problems with payments to your own business or fellow suppliers, it’s time to seek advice.”
Trade credit insurance can be tailored to cover entire turnover or specific client accounts. Once insured, the cover also acts as a useful barometer of a client’s performance. This is because a trade credit insurer will be alerted to financial problems with the client and in turn reassess the level of cover available. If it’s downgraded, it could mean problems lie ahead.
For further information about trade credit insurance, call Dean on 0121 452 8738, or email firstname.lastname@example.org.