Specific Credit Policy Conditions
Policy Conditions
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1 |
What is covered |
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1.1 |
Following Your proposal and in consideration of
the Premium We will pay You the insured percentage of the Insured Debt less
any applicable deductibles in the event of: • Insolvency • Protracted
Default |
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1.2 |
We may withdraw the cover given under this Policy at any time by
notice to You which will take immediate effect unless it relates to a Bound
Contract. On a Bound Contract cover is extended by 3 months from the date of
the notice or the end of the Policy Period whichever is the later. All
Insured Debts up to the date of the notice will continue to be covered. |
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1.3 |
If We withdraw cover You may at any time thereafter end the Policy and
We will refund Premium for the unexpired part of insurance on a time on risk
basis less the termination charge stated in the Certificate of Insurance. If
You decide to end the Policy and an event of Insolvency or Protracted Default
occurs after the end date We will not pay claim amounts arising from these
events. |
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2 |
What is not covered |
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2.1 |
We do not cover debts: • that exceed
the Sum Insured • arising
after the Sum Insured is withdrawn unless cover is extended on a Bound
Contract • where the
terms of payment exceed 4 months from Goods Delivered or Services Provided • where the
debt is incurred prior to the Policy Period • where the
invoice is not raised within 1 month of delivery of goods or services • that are
Disputed Debts • arising
after Insolvency, Protracted Default or a Notifiable Serious Event |
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2.2 |
We do not cover Pre-Delivery Costs more than the period stated in the
Certificate of Insurance prior to the Agreed Delivery Date. |
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2.3 |
Standard Exclusions are not covered as they are outside the scope of
this Policy. |
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3 |
Your obligations |
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3.1 |
You must comply with the Policy Conditions. |
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3.2 |
You must take reasonable care in granting credit to the Buyer and You
should not materially vary Your credit control procedures or change Your
terms of payment from those used at the time of making Your Proposal unless
with Our written agreement. |
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3.3 |
You must raise invoices within 1 month of delivery of goods or
provision of services unless We agree otherwise in writing. |
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3.4 |
You must advise Us immediately in writing if You become aware of
Insolvency, Protracted Default or a Notifiable Serious Event in relation to
the Buyer and where legally or contractually or commercially possible stop
further supplies of goods and provision of services to the Buyer. |
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3.5 |
You must take all reasonable steps to mitigate any loss. If required
You will execute any documentation or do anything necessary to enable Us to
be directly involved in the recovery of the Insured Debt. |
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