QBE DOES U-TURN ON INSURANCE POLICY AFTER INDUSTRY PRESSURE
In an effort to protect itself from the coronavirus crisis fallout, last Saturday insurance giant QBE informed customers it would no longer provide trade credit insurance for businesses it did not perceive to be an essential service with a limit of less than $US250,000 ($410,000). The decision did not apply to essential services such as food, pharmaceuticals, agriculture and telecommunications. It did not include construction on its “essential” list. The decision effectively blacklisted 9000 companies.
That meant suppliers selling on credit products worth up to $410,000 would not be insured in the event that some customers failed to make the payment.
Trade credit insurance policies give the supplier payout limits for each of its customers. If a customer limit is $1 million, the policy will cover the supplier for unpaid invoices of up to $1 million for that customer.
The QBE decision would have had a detrimental impact on many businesses within the building and construction industry.
CCF QLD members urgently raised the alarm with CCF QLD. CCF QLD established an immediate collaboration with other state and territory CCF offices as well as CCF National to raise concerns about the QBE decision. It was also bought to the attention of other industry experts, the Minister for Housing and Assistant Treasurer, and some local MPs.
Today, QBE reversed its decision and said it would reinstate Trade Credit coverage for the majority of the 9000 blacklisted companies, saying that the reinstated businesses would include those in the construction industry.
CCF QLD will continue to advocate for the civil construction industry throughout the COVID-19 crisis.
For more information about QBE’s support measures for business customers click here.