A welcome development for businesses – Government helps businesses access trade credit insurance

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On 4 June 2020 the Government announced a temporary, government-backed, reinsurance scheme to help businesses access trade credit insurance as they recover from the impacts of Covid-19.

The scheme will help trade credit insurers to continue to provide insurance for a wide range of businesses across the country by maintaining levels of cover that they might not otherwise be able to offer. The scheme will run until 31 December 2020, but this may be extended. In order to help the trade credit insurance industry to help with the economic recovery, the Government will act as a reinsurer to the trade credit insurance industry, sharing the risk of business insolvency losses with insurers. Businesses do not need to apply directly to the scheme. They will apply to their insurance company as normal. Support will be administered directly between the Government and those trade credit insurance providers that have signed up to the scheme.

Speak to our specialist construction and engineering lawyers

If you have any questions about how Covid-19 and the imposed restrictions will effect you and your business, speak to one of our construction team on 03456 381381 or email construction@ibblaw.co.uk.