Insurance for getting shafted!

[Johnny77]

Excuse the crude title, but are any company insurance options for getting shafted by suppliers?

By that i mean, lets say your business relies on a supplier getting you stock, then your supplier goes under, can you insure against that?


I know you can insure pretty much anything these days, so im sure its do-able, but has anyone come accross anything like it before?

thanks

johnny

 

[spigwell]

Excuse the crude title, but are any company insurance options for getting shafted by suppliers?

By that i mean, lets say your business relies on a supplier getting you stock, then your supplier goes under, can you insure against that?


I know you can insure pretty much anything these days, so im sure its do-able, but has anyone come accross anything like it before?

thanks

johnny

Paying by CC would give you cover for goods purchased. But as far as being insured about a supplier going under i would think not. After all you can always find another supplier in a short period of time.

Gary

 

[tony84]

agree with the post above.

If they went under you could contact the supplier directly and if you cant order large enough quantities im sure they will point you to a wholesaler.

If you are dealing with the supplier then i think you would be in a spot of trouble but probably not as much as the other company.

 

[Michelle101]

i think all should depends on suppliers, u chose!!!! right??

 

[logicfusion]

I know some big corporates pay for insurance for this. I don't think it is cheap but it is available.

My other half is an account manager for a well known manufacturer. The credit control department insist that insurance is taken out in some situations in the event of a supplier going under. Of course, there are some suppliers the insurance company will not cover!

 

[lockyer]

There are 2 types of insurance that would/do cover these or similar scenarios:

Business Interruption cover - This normally only covers your own business, and is part of your main policy, but it can be extended to failure and incidents at/by/with named suppliers.

Credit Insurance - Covers defaults by customers/suppliers.

As you may have guessed I am a broker who arranges these covers, www.lockyers.co.uk , but general advice is free, and it may be your circumstances don't warrant either of the above.

If you want to chat just give me a bell.

Regards,

Jon Newall