Frequently Asked Questions
1. What is credit insurance?
Credit insurance provides cover to businesses against non-payment of debts owed
to them by business customers for goods or services provided on credit terms.
2. Does HCC International provide any debt collection assistance?
HCC International works in partnership with Nelsons Solicitors and recommends that
you place your debts with them for collection. This will give you added policy benefits
including faster payment of your Protracted Default claims. To find out more,
click here
3. Can I exclude any Buyers from my whole turnover policy?
Whole Turnover Credit Insurance is the most comprehensive cover you can buy. This means
you should request cover on all your Buyers except those where you are using your discretion.
Exceptionally you can ask to exclude a Buyer and we will usually agree if we understand your
reasons.
4. What is a Buyer?
Under HCC's 'Trader' Policy, a buyer is a Policyholder's customer on
whom credit insurance cover has been requested and HCC has issued a Credit Limit.
In technical accounting terms a Buyer becomes a Debtor of the Policyholder when it owes money on an invoice.
5. What is a credit limit?
A credit limit is the maximum amount of cover provided on a Buyer risk. It can sometimes be for a nil amount
which is saying that no cover is being given. A Credit Limit Notification (CLN) is issued by HCC to the
Policyholder advising the amount of the Credit Limit. A Credit Limit may be 'written', or where lower than
the smaller limit levels stated in the Policy, then be 'gain' or a 'discretionary' Credit Limit
set by the Policyholder themselves.
6. What is a bound contract?
When a Credit Limit is reduced or withdrawn Bound Contract provides extended cover for a
specified period while a contract is completed. It does not provide cover on new contracts or those not bound.
7. Does HCC provide any local customer support?
Yes. HCC prides itself on customer service linked with the Broker.
Part of the service package includes an inception visit from a dedicated Account Executive
to explain how the policy works. The Account Executive is available to discuss any issues all
through the policy period and then to meet again when the broker makes arrangements to talk over renewal.
8. What does credit insurance cost?
HCC International premiums usually cost between 0.1% & 0.75% of your annual sales
depending on the market sector you trade in, your bad debt experience and the amount of your sales.
Flexibility in premium costs can be tailored to your requirements by use of excesses and similar price mechanism tools
9. Are all my debts from buyers covered?
HCC International recommends whole turnover cover is suitable for most businesses
wanting comprehensive cover and credit management support. This means all your debts
from buyers are covered unless a buyer is not creditworthy. Flexibility is provided
for you to choose not to cover 'blue chip' risks.
10. Is cover only provided when my buyer becomes insolvent?
No. A HCC International policy also provides cover for delayed payment (Protracted
Default) ensuring your cash flow disturbance is kept to a minimum.
11. How do I know what cover I've got?
We will notify you of buyer credit limits covered in response to your requests.
Your credit limit request can be made by using our secure Internet facility or faxing
a simple cover request form. On smaller limits you can decide your own cover using
your discretion up to agreed levels.
12. Will I receive notification of cover quickly?
Yes, through HCC International you receive most UK credit limit notifications instantly
and the balance by the next day at the latest.
13. Do claims take a long time to be paid?
Not with HCC International! Our stated aim is to pay valid claims for trade supplies
within 7 days of receiving a (fully) completed claim form and even on the more involved
construction work done claims we achieve 28 days. We do not hide behind 'technicalities'
and long drawn out proof of loss confirmations.
14. Do I have to do a lot of paperwork?
Although some competitors whole turnover credit insurance policies can be quite
demanding on form filling and reporting, HCC International has specifically designed
its policy operation to keep paperwork to a minimum.
15. Can difficult industries like construction be covered?
Yes, although not surprisingly premium charges reflect the greater likelihood of
non-payment of invoices and valuations. HCC International has recently brought out
a policy targeted exclusively at the contractor/sub-contractor market called 'Constructor'.
All those tricky areas of retentions, final accounts, pay when paid are included
as standard if you choose.
16. Are there any benefits to me apart from the insurance cover?
1 |
Sales are likely to be increased through the confidence credit insurance protection provides and it can act as a deal facilitator. |
2 |
Claims can be assigned to banks and factors enhancing your ability to arrange facilities at improved terms. |
3 |
HCC International delivers credit management assistance and dedicated support through our information network, underwriting skills and helpful staff. |
