Government offers six months top-up insurance
The Chancellor Alistair Darling announced in last month’s Budget some strictly limited support in relation to credit insurance.
Marion Rich, BCSA Director of Legal and Contractual Affairs, said: “From this month (May) until the end of December 2009, suppliers will be able to purchase six months’ top-up insurance from the Government if credit limits on their UK customers are reduced, backdated to 1 April 2009.
“This provides another alternative to the abrupt disruption of supply and cashflow, and gives time for the businesses affected to adjust to changing circumstances.”
The top-up will be provided by private sector insurers and the amount available to each supplier, if a credit limit is reduced, will be that which either restores cover to the original amount, doubles the amount the company is able to obtain or £1M, whichever is the lower.