Trade Credit (Debtors) Insurance
Insured buyers are those named on a list of buyers provided to members and maintained by the Co-Operative. There are some 750 buyers named on the list and members can have buyers added to the list of request to the Co-Operative, who in turn, seeks to have the application approved by the insurers.
The list covers abattoirs, feedlots, butchers and live exporters within Australia.
A sale is an insured sale if it is made to a buyer on the Co-Operatives list of insured buyers and made within the nominated time restriction referred to in the jargon of insurance company as the Maximum Extension Period.
Maximum Extension Period
The Maximum Extension Period is the nominated time limit for reciept of payment for a sale. Any sales made to a buyer while there are unpaid amounts owing for longer than the nominated extension period would be uninsured.
A trigger for a claim can be either:
- Insolvency (main) - Insolvency is defined in the relevant policies managed by the Co-Operative and includes the appointment of a receiver, receiver manager, the setting up of a deed of company arrangement and winding up orders issued by a court.
- Protracted Default - This is where the buyer just has not paid for a long time but has not become legally insolvent. A bit tricky here and you need to refer these to us on a case-by-case basis.
- The cover includes protection in the event of Preference Claims - This is a claim made against a member by a liquidator of an insolvent insured buyer for the recovery of monies received which give the member a preference over the rest of the general creditors.
For more information or to arrange Trade Credit Insurance for your business, contact us today.Contact Us