Record paid out in trade credit cover claims
Commercial insurance
13th April 2010
The total paid out in trade credit insurance claims increased by 95 per cent year-on-year to a record £320 million in 2009, new data reveals.
According to the latest figures from the Association of British Insurers, 22,791 individual claims were dealt with last year and the organisation suggests these results are indicative of both problems with liquidity among UK firms and the continuing impact of the recession.
However, the body's director of general insurance and health Nick Starling notes the fourth quarter of 2009 saw a 23 per cent dip in new trade credit insurance claims in comparison with the previous three months.
"The outlook for 2010, although improved from 2009, remains highly uncertain, which reinforces the importance of protection and risk management services provided by trade credit insurers," he explains.
Trade credit cover is a form of UK insurance policy that protects businesses against losses incurred generally as a result of a buyer or other large customer going bust.
For more information on how Giles can help you with your business insurance, Click here.
