Euler Hermes UK, the credit insurer, has launched a new credit management policy specifically designed for the construction industry. This follows on from the new credit management solutions package that was launched by the company at the beginning of the year and is part of the company’s strategy to provide tailored solutions for specific trade sectors.
The new policy is written in plain English, uses appropriate terminology and provides additional benefits to Euler Hermes UK’s standard policy to reflect practices in the construction industry. For instance, the policy now covers services that have been provided on site under a construction contract, including variations and day-work. Coverage is available against the insolvency of a customer as well as protracted default and political risk if trading overseas.
Along with all other policies offered by the company, the contractor policy now includes an overdue account collection service, delivered by one of the UK’s leading commercial collection agencies, Euler Hermes Collections. This provides collection services both in the UK and overseas at exceptionally competitive rates. The policy also gives clients exclusive access to Euler Hermes UK’s unique credit opinions service, First Source.
Ian Bocca, assistant director at Euler Hermes UK comments, “The launch comes at a time when there are dire warnings for the construction sector. BDO Stoy Hayward have issued a warning that around 50 construction and property firms could go bust each week over the next three years. Our own research shows that bad debt is a common reason for the failure of a business. Companies that fail because of bad debt have not used credit insurance to protect their assets. Those that do will have safeguarded their businesses and put themselves into a much more competitive position.
Our specialist underwriters have an in-depth knowledge of this trade sector and their expertise is second to none in understanding its working practices. We are best placed to offer a truly bespoke service to companies in this market.”