SPECIFIC ACCOUNT POLICIES

There is a more limited market into which we can place either one-off larger contracts or one or more of a company's largest customers.

Due to the selective nature of this risk the underwriters tend to be more stringent in their requirements and they would normally like to see a minimum credit limit requirement of £100,000 or an annual turnover with the insured customer of between £250,000 and £300,000 per annum. There is no excess with this type of policy and the insured percentage in the event of a claim is normally 100%. We often find that whilst we are unable to place a specific policy we are able to arrange cover as part of a whole turnover or catastrophe policy.

This type of policy is suitable for a company who have a large or excessive exposure to a single company or group of companies. Premium rates tend to range from 2% - 5% of the required credit limit, we do however see lower rates if the risk to be insured is particularly strong. We would expect to see a minimum premium for this type of business of £2,500.

The information required to obtain an indication of terms is quite straightforward as we really only need details of the customer, turnover, contract period, credit limit and the terms of payment.

It is also possible to arrange cover in order to protect against consequential losses that might arise in the event of the insolvency of a key supplier. For example failure to complete an order in time due to the failure of a supplier could be expensive and potentially very damaging if either legal action or penalty clauses were invoked. In order to consider a policy we really only need the same information as is required for a specific account policy. Before an indication of terms is given we must be able to demonstrate a clearly identifiable and quantifiable risk.

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