News

Time to consider Trade Credit Insurance

News >>

The credit risk environment is continuing to deteriorate but did you know that we can provide an Insurance solution for you? It is called Trade credit insurance.

There are a few insurers who can offer this cover and it is certainly worth considering, particularly if you are dependent on your debtors paying up quickly to maintain cash flow. However, what happens if that debtor goes into receivership because they are unable to pay you?

It has been reported by insurers that there has been a 20% increase in the number of credit insurance claims and a 64% increase in the dollar value of claims for the past three months of 2012. The failures of Retravision Southern, Wow Electrical, Kell and Rigby along with the Hastie Group, have certainly contributed to this. With the recent failure of Darrell Leigh, it will be interesting to see what further impact there will be on claims for their Creditors who are owed money.

Many Businesses have stated that the amount of days outstanding has increased and they have been incurring bad debts in the last quarter. They believe that in the next three months, it will be even more difficult to get payments from debtors.

ASIC reports that for the year up to May, total corporate collapses have increased to 13.1% over the last year, which is 8.3% higher than during the GFC.

If you are generating at least $1,000,000 a year in turnover, then Trade credit insurance is something you should be considering.

When we see a client and review what kind of risks they have, this will include property, liability, or perhaps Marine Cargo insurance, we will also ask: ‘what about your trade receivables? Aren’t you worried about that? With premiums starting from $15,000 as a minimum for this cover, it may be a small price to pay to maintaining the cash flow of a business and leave the recovery of amounts owing to your business to your insurers.

Speak to us about this cover, CPR are the experts who will save you.

Last changed: Aug 13 2012 at 9:58 PM

Comments

  1. None Found

Add Comment

Latest News

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

read more

Finalist for QLD Broker of the Year

Robert Cooper was honoured to be nominated as a finalist for Queensland Insurance Broker of the year for 2020, as part of the National Insurance Brokers Association. Unfortunately he missed out on the ultimate award but is a reflection of the high standard that the industry now has for such awards.

read more