The Builders Merchants Federation (BMF) has confirmed to its members that the government has extended its Trade Credit Insurance scheme by six months to 30 June, 2021.
The Scheme ensures that trade credit insurance coverage and credit limits are maintained during the coronavirus pandemic, helping businesses to trade with confidence.
John Newcomb, chief executive of the BMF, said: “I currently chair the Construction Leadership Council’s working group on trade credit insurance that, along with the CBI, has been calling for an extension to the Trade Credit Insurance scheme.
“We also provided detailed evidence from BMF members to support the extension. We are very pleased that the six-month extension has been confirmed, providing the reassurance I know many merchants were looking for as trading through pandemic continues.”
The Trade Credit Insurance scheme, which is approved under State Aid Rules, is available until 30 June, 2021, backdated to 1 April, 2020. Individual businesses do not need to sign up for the scheme, as in-scope policies held with a participating insurer will automatically be eligible for inclusion.
The participating insurers are:
- American International Group UK
- Atradius UK
- Coface UK Branch
- Credendo – short-term non-EU risks
- Euler Hermes UK, a branch of Euler Hermes SA (NV)
- Markel International Insurance Company
- Nexus Trade Credit
- QBE UK Limited and QBE Europe SA/NV
- Zurich Insurance plc.
The Construction Leadership Council guidance on trade credit insurance during COVID-19 has also been updated to reflect the latest reinsurance scheme information. You can read the full guidance here.
