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Coverage
We are committed to understanding clients’ needs and designing tailored policies that offer flexible protection:
Whole-turnover – fixed or variable premium policies with flexible structures to suit the individual client’s needs. Policies can provide indemnity of up to 100% through the risk share arrangement of a hybrid aggregate first loss structure. Covering buyers for both insolvency and protracted default, we can insure both domestic and export trade. The security behind our policies is underwritten 100% by QBE Insurance (Europe) Ltd.
Multi-buyer – designed for companies whose exposure is concentrated among a small number of key customers. Cover is offered on a named-buyer basis for the organisations who make up a significant proportion of the client’s sales ledger receivables.
Excess of loss – offers medium-to-large sized corporates protection against exceptionally high levels of bad debt losses. Companies with a substantial turnover and strong credit management processes – and who are willing to accept a level of self-insurance to achieve premium savings – may find this an attractive option.
Single buyer – will suit companies with a concentration of exposure to a single buyer whose failure would have a catastrophic effect on the insured’s cash flow. The structure will accommodate significant single-buyer exposure.
Top-up cover – a top-up facility offers an additional layer of credit insurance on a single buyer, supporting insurance provided by another primary carrier. QBE can offer to top up the cover required by an insured subject to the agreement of the primary carrier. This applies to companies who have credit limit shortfalls with their primary credit insurer on a particular buyer.
Surety Bonds - designed to provide a third-party guarantee to protect against any loss or damage suffered as a result of breach of contractual obligations. Bonds are tripartite agreements that do not constitute a contract of insurance. QBE is able to offer a number of different traditional classes of bonds for the UK market, enabling clients to offer independent security to customers and employers.
We target UK-domiciled SME companies in the construction and related sectors, the travel sector, and any companies requiring HM Customs & Excise bonding. Preferred contract length for construction bonding is a maximum of five years to include maintenance for contracts based in the UK. We are also willing to consider contracts undertaken in Western Europe.
The underlying risk for surety bonds is the risk of financial failure. We therefore require at least two years’ successful trading history demonstrating good financial health and supported by full report and accounts and details of banking facilities. Where appropriate we may also request sight of management accounts. If the risk company is part of a larger group, we will also assess financial viability at group level. We will always require a satisfactorily completed proposal form, and all bond issues must be supported by a corporate counter indemnity from the risk company.
Bond details:
Performance bonds issued to the construction industries will always be of a conditional nature rather than ‘on demand’ and normally follow the standard ABI format – although we may be wiling to consider variations to this. We will issue bonds required for the travel industry and HM Customs & Excise on the appropriate authorised wordings.
| Key Contacts |
Jeremy Hughes
Portfolio Manager Trade Credit and Surety |
+44 (0)20 7105 4213 |
jhughes@uk.qbe.com |
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