This company provide electrical services in the commercial and industrial sectors including lighting systems, electrical design and installation, inspection and testing, security systems and maintenance. Selling only to customers in the UK this is a small business turning over approximately £1m.
Requirements & Solutions
Having suffered a significant loss in the previous financial year, this client was introduced to us by their general insurance brokers. They were looking to protect themselves against further losses as one customer comprised a large amount of their ledger, as well operating in the somewhat high risk sector of construction.
Acumen Credit Insurance were able to negotiate a very competitive premium despite the loss history and sector of the client, and just 2 months after the policy was set up the client was informed that their biggest customer was entering administration. Within 24 hours of this notification our experienced claims team obtained confirmation of debt from the insolvency practitioner and the claim process was underway. There was, however, an administrative error with the client’s invoicing and so the validity of the claim was questioned by the underwriters. Despite this, our claims department were able to negotiate with the insurer to resolve this issue and managed to get the claim paid just 11 working days after the claim submission – a whopping 18 times the premium paid.
Insurance often gets a bad press for not paying claims, however in reality the acceptance rate for Acumen Credit Insurance clients is over 92%. Of the remaining rejected claims, bar far the biggest proportion is due to policy non-compliance by the insured. This includes not having a valid credit limit or justified discretionary limit on the debtor, late reporting of an overdue debtor or not being able to provide supporting documentation such as proof that goods were delivered or a contract carried out. Acumen Credit Insurance however, with our experienced teams of account handlers, can provide advice on policy compliance, pre-vet all claims and negotiate with insurers to ensure prompt payment in order to achieve the best outcome possible when it comes to making a claim, no matter the size of the client or the claim.