The British Insurance Brokers’ Association (BIBA) has launched a new scheme for trade credit insurance through CMR Insurance Services.
This new scheme provides BIBA members with access through CMR to trade credit insurance, which protects businesses from the risk of their commercial clients not paying invoices.
CMR’s managed credit insurance policy reduces the risk of a bad debt destabilising a business.
BIBA’s scheme was introduced in light of recent high profile collapses of companies such as Monarch and Palmer & Harvey.
Trade credit insurance supported £314 billion of UK trade last year, enabling businesses of all sizes to grow, capitalise on trade opportunities and protect their bottom line. according to BIBA.
Mike Hallam, head of technical Services at BIBA, said: “For members, this provides access to a class of insurance that can be invaluable to businesses. There is no question that there is a need for this type of insurance, according to the Association of British Insurers (ABI), in 2016 trade credit insurers paid out an average of £4 million per week in claims settlements. We look forward to working with CMR.”
Christian Hoy, managing director of CMR, added: “We are delighted to be working with BIBA to promote bad debt insurance that applies to any company that gives credit to their customers.”
“There are always risks associated with trade and taking steps to protect cash flow is a wise precaution in any economic environment. In today’s challenging marketplace the risks are heightened and this cover is more necessary than ever during these unpredictable and uncertain times.”