What are the reasons I can make a claim for?
In our standard policy wordings there are two events called Insolvency and Protracted Default. They are both described in the Definitions section of a policy. Although there are the legal terms in Definitions, generally the meaning of Insolvency is when a business goes ‘bust’. The general meaning of Protracted Default is the longer delay in making payment of a debt. In business it’s usually accepted practice that there is a period of delay in making payment. The supplier will chase the buyer for payment for a period of time and eventually if unsuccessful will pass collection to a debt collector and/or issue legal proceedings. Default by the Buyer occurs at the date the payment first becomes due, Protracted Default under an HCC Policy is when the policyholder passes the debt for collection or issues legal proceeding.
