Typically required to confirm the performance of a service to allow the granting of a contract. It offers security to the party issuing the contract that the contractor is able to fulfil the contract.
A Credit Insurance contract comprising of Policy Conditions, Policy Schedule and Certificate of Insurance.
The period stated in the Schedule or Certificate of Insurance.
Pre-Delivery Costs (Pre-Despatch Or Work In Progress)
Costs incurred by the Policyholder between the date of the contract of sale and Agreed Delivery Date for which the Buyer is not normally liable under the contract of sale. They normally exclude overheads, profit and damages for breach of contract but can include:
- Raw materials
- Direct labour costs
- Preparation of goods prior to the physical manufacturing process
- Purchase of goods by the Policyholder for onward sale to the Buyer
- Work in Progress costs incurred in manufacturing
- Stock awaiting delivery
- Pre-paid delivery costs
Amount paid by an Insured client to the insurer in return for risk coverage.
Private Limited Companies
Can have one or more members, e.g. shareholders. They cannot offer shares to the public.
Private Unlimited Companies
These are rare and usually created for specific reasons.
The risk that a government buyer or a country prevents the fulfilment of a transaction, or fails to meets its payment obligations, or the risk that is beyond the scope of an individual buyer or falls outside the individual buyer’s responsibility. Insured Perils include Contract Frustration, Contract Cancellation, Export Restriction and Import Restriction.
This is where the Buyer is in default due to non-payment of their contractual obligations and where there is no valid dispute between the parties. Normally at this stage you would have issued court proceedings or passed the debt to a third party debt collection agency.
Public Limited Companies (Plc)
Must have at least two shareholders and must have issued shares to the public to a value of at least £50,000 or the prescribed equivalent in Euros before it can trade.