C&C Insurance Brokers back government Trade Credit Insurance Support Scheme

Stockport based C&C, one of the UK’s top 50 independent insurance brokers, are encouraged by the UK Government’s decision to launch the Trade Credit Insurance Support Scheme.

The scheme will provide a £10bn guarantee, covering 90% of B2B trade credit insurance transactions backdated from 1 April 2020 until the end of this year. A review at the end of September will determine whether an extension is required.

Paul Jackson, Credit Insurance Specialist at C&C Insurance Brokers explains

“Under the scheme, the Government will act as a re-insurer to the trade credit insurance industry, sharing the risk of losses arising from business insolvency with insurers. Insurers will take 10% of claims that result from business failure while the government will take 90% of the premium and claims. Trade credit insurance is a daily necessity for hundreds of thousands of businesses across the UK – particularly those in non-service sectors such as the manufacturing and construction sectors. This £10 billion guarantee will provide peace of mind to businesses, allowing them to continue to trade and maintaining liquidity in supply chains.

“With billions of pounds of business turnover being supported by trade credit insurance each year, this reinsurance scheme will see the government and insurers working closely together to ensure that the vast majority of this cover remains in place.”

What does the Trade Credit Insurance Support Scheme mean for businesses with credit insurance already in place?

Existing cover will be maintained as far as possible between suppliers and their clients, which is key in allowing the UK economy to overcome the challenges of the current crisis.

Where limits have been reduced, Insurers will look to have these reinstated on a demand-led basis, where customers have firm orders and therefore a business needs to have cover back in place.

Credit Insurance provides cover for businesses against losses arising from non-payment of goods or services sold on credit terms.