April 15, 2020
During these uncertain times, we recognize you are facing new and unprecedented personal and business challenges. We understand that many of your customers are experiencing business disruptions that impact their ability to pay you on time.
To offer you with flexibility with policy requirements during the COVID-19 crisis, we are offering the following concessions effective through May 31, 2020:
- For exposures up to $500,000 you have two options:
- You can recognize an additional 60 days on top of your existing Maximum Extension Period or State of Default reporting requirement before you must report a past due payment to us, or
- You can postpone the due date of payment without our prior written approval as long as the revised due date remains within 60 days of the original Maximum Extensions Period expiration.
- For Protracted Default claims up to $500,000, we are offering a 30-day filing extension beyond your existing claim filing period. Note that this does not apply to insolvency claims.
- Requests for payment extensions and claim filing extensions on exposures greater than $500,000 will be reviewed on a case by case basis.
While we continue to navigate the crisis, the Commercial Underwriting team is continually assessing policy parameters, pricing, and authorities given the ever-changing risk environment.
To help mitigate potential loss at any time, you should act with care and prudence as if you were not insured. This duty of care and caution requires, among other things, that you contact your buyers—or your insured suppliers—to assess the situation before you proceed with the dispatch of the goods. It’s best to be proactive, not reactive during this time.
In all cases, we advise you to first review your Policy terms and conditions. If dispatch was completed as outlined in your contract, cover should continue under the Policy assuming you comply with the terms and conditions. Under a standard credit insurance Policy dispatch is normally defined as goods being passed to the first independent carrier, however the details of your specific Policy should be reviewed.
The exceptional circumstances of Covid-19 cannot be considered such as to outweigh all obligations, including notification and declaration, as stated under the Policy. Please contact a member of your service team with any questions.
Regional Head of Commercial Underwriting