Trade Protect
SME Credit Insurance Offering
Small and Medium Enterprise Businesses are major contributors to the UK & Ireland market economy; However factors outside of their control can have a considerable effect on their ability to remain financially healthy. In order to support these businesses Gallagher have partnered with one of the world’s largest credit Insurers, Atradius, to develop Trade Protect, one of the market leading credit insurance policy, designed to provide support to allow your business to trade with confidence.
A product that allows your business to be more competitive and grow
Trade Protect can give you assurance that the money you are owed is protected, and provide the tools to allow you to focus on growing your business.
Trade Protect Benefits
Protection for your business in the event of a buyer defaulting on a payment or becoming insolvent leaving debts unpaid
Cover for both Domestic and international Trade with buyers in all OECD countries
Access to credit limit assessment underwritten by a leading global credit insurer
Free collections service for UK and International Debts
A simple, fixed price policy to support with financial planning
24/7 access to an online information portal, allowing you to manage risk with confidence
Trade Protect Key Features
|
· Businesses with insurable sales up to £5M
|
|||||||||||
|
· £1000 Minimum Premium
· Covers UK and/or Export sales (OECD and Non-OECD countries |
|
||||||||||
|
· Free Collections service to include International Debts |
|
||||||||||
|
· Insolvency, Protracted Default (90%) & Political Risk (95%) covered |
|
||||||||||
|
|
|||||||||||
|
· Discretionary Credit Limit up to £10,000 (although will consider a maximum of £20,000) |
|
||||||||||
|
· Credit Limits backdated to the start date of policy (if agreed in first month) |
|
||||||||||
|
· Unlimited number of Credit Limit applications included, in accordance with IML |
|
||||||||||
|
|
|||||||||||
|
· Maximum Limit of Liability of 50x Premium as standard - up to maximum of £1.5M |
|
||||||||||
|
|
|||||||||||
|
· 90 days Maximum Credit Terms (with the ability for 120 days for a select number of buyers)
· 60 days Maximum Extension Period |
|
||||||||||
|
· 30 days Delayed Effect Period (i.e. proposed notice period for credit limit reductions or cancellations) |
|
||||||||||
|
|
|||||||||||
|
· Minimum Retention of £500 (i.e. policy excess) |
|
||||||||||
|
|
|||||||||||
|
|
|||||||||||
|
· Loss Payees allowable on the policy |
|
||||||||||
|
|
|||||||||||
|
· 31 day invoicing period (i.e. when the insured client needs to raise an invoice) |
|||||||||||
|
|
|||||||||||
|
· Total aggregate of credit limits capped at 75 % of annual turnover
|
|
||||||||||
Work In progress Cover
This refers to the period after a sale has been agreed but before any goods are despatched, where a business may manufacture a bespoke product specifically for one customer, i.e. bespoke machinery, branded goods
Often manufacturing bespoke goods can be a costly process – what happens if the buyer becomes insolvent before dispatch even takes place?
Trade protect can cover the costs incurred via Work in Progress cover, up to a maximum of 3 months. This will be charged at 5% of the total premium payable per month.
Discretionary Limit /Blind Cover
Discretionary Limit gives you the underwriting pen, allowing you to grant credit, (subject to a satisfactory status report or trading history) whilst being covered under your policy in the event of the buyer becoming insolvent. Standard limit applied is £10k.
Blind cover is for those instances where you are looking to branch out into new markets and find new customers. Blind Cover makes it easy to deal with a first order from a new entity offering 50% indemnity against an order value up to a maximum £5k, however once the client has traded past their first order ( paid to terms) then a Discretionary limit can be established, using trading experience to take the cover to 90% indemnity.
About Gallagher
Founded in Chicago in 1927, Gallagher has grown to become one of the largest insurance brokerage and risk management companies in the world. With significant reach internationally, the group employs over 26,000 people and its global network provides services and expertise in more than 150 countries.
Would you like to talk?
Contact Gallagher on:
Tel: 0121 200 4956
Email: [email protected]