Further changes to trade credit insurance 'top-up' scheme

The Department for Business, Innovation and Skills (BIS) has announced further changes to the trade credit insurance top-up scheme.

Under the scheme, which came into effect on 1 May, those companies that have had their credit insurance cover reduced since 1 October 2008 are able to purchase six months of top-up cover.

In June, the Government backdated eligibility for the scheme from April 2009 to October 2008.

Following feedback from insurers, brokers and businesses, further changes have been made with effect from 20 August, as follows:

• A reduction in the price of top-up cover, from 2% to 1%
• Removal of the £20,000 lower limit on top-up cover
• An increase to the upper limit, from £1 million to £2 million

The short-term measures allow suppliers to buy Government-backed insurance to either restore cover to its original level, or double the amount they are able to obtain from the private sector up to the value of £2 million (whichever is the lower).

The scheme will run until 31 December 2009.