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    • Domestic Supplemental Credit Insurance

    Scheme Overview

    In the Budget 2009 the Canadian Government announced that it would be making funds available to create additional capacity in the domestic trade credit insurance (trade receivables) market. Under the arrangement Canadian businesses with existing credit insurance policies will be able to purchase additional coverage on Canadian risks where their current limit is not sufficient.

    This is a temporary measure and is expected to remain in place for a maximum of two years.

    Eligibility

    The scheme is open to any business in Canada with an existing trade credit insurance policy.

    How Does the Scheme Work?

    Businesses with an existing policy that require additional cover should contact their Euler Hermes Canada account manager or broker who can make arrangements to issue a supplementary policy. This policy will record the additional coverage and will be linked to the current policy.

    Key features of the scheme:

    • The additional capacity will be made available to clients with existing credit insurance policies.
    • Cover will be available only on trade with Canadian companies.
    • Export sales are not included in this scheme.
    • The value of the cover available will be determined by the level of cover provided by the current policy.
    • The additional cover will be used to increase existing credit coverage but will not be available on risks where the insurer has been unable to provide cover.
    • Cover can be purchased for any number of buyers where existing credit limits are in place.
    • You my cancel the supplementary policy or limits written therein at any time with one months notice.
    • The supplemental policy will expire on the same date as the existing policy.

    Level of Additional Cover Provided

    The cover provided will match the current limit in place subject to a maximum of CAD$1million.

    Any change to the primary credit limit will be reflected in the supplementary limit such that the maximum coverage available under the scheme cannot exceed the revised primary limit amount.

    If the primary policy limit is cancelled the supplementary limit will be cancelled at the same time.

    The total amount of additional cover provided cannot exceed CAD$10 million for any one client.

    Making a Claim

    In the event of a claim the two limits will be combined to determine the level of cover and the amount payable will be calculated in accordance with normal policy conditions.

    Scheme Costs

    The cost of the additional coverage will be set at an annual rate of 3% of the limit written. Cover may be purchased for periods less than one year and premium will be prorated accordingly.

    Premium will be payable in full on the effective date of the credit limit.

    Premium will be payable to Euler Hermes Canada who will remit this to the Government on your behalf.

    Questions

    Should have any questions regarding this scheme please contact your Euler Hermes account manager who will be happy to assist you.

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