How Debtor Insurance works

It's very simple

There are just a few simple steps to the process:

• Step 1 - We will ask you for some basic financial information and provide you, free of charge, with a quotation which includes an initial assessment of the credit worthiness of your top ten customers

• Step 2 - Should you wish to accept our quotation for a Debtor Insurance facility, you will be provided with a link to our simple on-line policy management system. Through this you can request insured limits on each of your customers and manage the facility. The system is interactive, allowing you direct communication with limit underwriters

• Step 3 - During the course of the facility you will be required to provide us with information on overdue debts (standard terms plus an additional 60 days) via the on-line system. This is a standard requirement of any debtor Insurance facility, and is a very simple procedure taking no more than 15 minutes per month.

What Cover is provided?

Debtor Insurance provides cover for credit risks with both UK and Overseas debtors and protects both against Insolvency and Protracted Default:

Insolvency: should one of your customers for example go into Administration or Liquidation you will be covered for up to 90% of the bad debt suffered, as long as a valid customer limit was held. The claims process is simple and straight forward and we will normally settle your claim within 30 days of receipt of Confirmation of Debt.

Protracted Default: where a UK company fails to pay it’s obligations to you, but has not gone into liquidation , a claim can be made under the policy as soon as you have a County Court Judgment awarded in your favour. For a non UK debtor a claim can be made 6 months after the due date of the invoice.

Service Features

• Whole turnover policy
• 90% Indemnity
• Typically £1000 minimum excess. Bespoke structures are available.

Exclusions, Limitations & Restrictions

The following business features are not covered by Debtor Insurance:

• Cash or consumer credit sales
• Sales to government buyers in the UK
• Sales to associated companies or a company where you have a shareholding or financial interest
• Sales where a valid credit limit has not been issued for one of your customers
• Sales made on a consignment stock basis