The UK government has said it will guarantee business to business transactions by reinsuring trade credit coverage – a type of insurance that pays out to cover a loss if a buyer defaults on payment. The temporary arrangement will mean the government will share the losses with insurers, who are currently raising premiums on the cover to reflect the increased risk of default presented by Covid-19. The Association of British Insurers, along with the British Chambers of Commerce, have welcomed the move.
Insurance comparison firm GoCompare has warned that certain activities families are engaging in during lockdown to entertain their kids or make a household improvement could increase the risk of a claim. The company commissioned research that found just under a quarter (22%) of families with school-age children have invented new games to keep their kids entertained, and 15% said their kids have been playing ball games indoors. GoCompare said it’s unsurprising, given those statistics, that 11% of parents of school-age children admitted that their kids have damaged their home, or its contents, during lockdown. It also urged families to ensure that their home insurance included cover for accidental damage, as a claim might be rejected if amateur DIY or the kick of a ball is at fault.