Big increase in insurance claims

ALMOST 50 per cent more trade credit insurance claims were made in the first three months of 2009 than in the first quarter of last year, new figures from the Association of British Insurers have revealed.

The total value of claims rose by 166 per cent to £316 million, while the number grew to 9,213.

Trade credit insurance exists to protect a supplier if a customer company collapses before paying outstanding invoices. Many firms have been hit by insurance companies refusing to provide cover as the credit crunch takes hold – especially in industries such as retail and construction.

Nick Starling, of the ABI, said the figures showed that the economic situation "remains very tough".