Managing credit insurance through the COVID 19 Crisis – part 2
This post is about credit insurance policy compliance and a change to the nature of your business during COVID-19.
It seems we’re all adapting to the pressures of this crisis – and with change comes opportunity. However, change also requires caution.
All credit insurance policies include a “Description of Trade” which sets out the type of work / goods / services that any claim will be limited to. During Covid 19 lockdown, many companies are, sensibly, diversifying and adapting – looking for new product offerings or new markets. It’s vital, then, that you check the terms of your credit insurance policy, because it may need to be amended. For example you can extend cover to new areas of operation or have new (export) markets noted.
One example we’ve seen is an office stationery manufacturing client that has switched to manufacturing PPE and added sanitising products to its product range.
We would hope for flexibility from our credit insurance partners in the event of a claim but we don’t want to take the risk or rely on goodwill. The best way to make sure a claim is paid is always to comply with the policy.
See our original post here.