Construction firms trading without credit cover
One in five construction companies are now trading without credit insurance cover, according to research by the Construction Products Association (CPA).
Meanwhile, firms continue to steer a wide berth around the government’s credit insurance top-up scheme.
Of the 100 construction firms polled, the CPA found just one that had opted for the government plan, and even that business said the cover provided by the scheme is “expensive” and “very limited”.
“It is clear from this survey that the scope and cost of the scheme has made it unattractive to all but a few companies,” said CPA chief executive Michael Ankers.
“Unless the Government is prepared to extend the scheme beyond the end of the year, any changes are unlikely to have any real, beneficial impact.”
A leading credit insurer said take-up remains low for the government scheme because it is “simply too pricey” for most businesses.
Government ministers have pledged to work on a more affordable insurance model.
Category: Business Insurance News, Insurance News
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