To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to assist food and drink wholesalers who had their trade credit limits (a) reduced or (b) withdrawn by insurers in advance of the full re-opening of the hospitality sector.
The Government’s Trade Credit Reinsurance Scheme will see the majority of Trade Credit Insurance coverage maintained for businesses across the UK. The Scheme operates as a reinsurance arrangement which will see trade credit insurers continuing to write and maintain cover to business throughout the Covid-19 crisis.
We expect to finalise details of the scheme with both insurers and the European Commission soon. Contractual agreements with insurers will be signed shortly afterwards allowing cover that has previously been reduced or withdrawn to be reinstated. If a business feels that their coverage has been withdrawn unfairly they should contact either their previous insurer about reinstating cover, or look to arrange new cover under the same conditions as their previous coverage.