Catastrophe Insurance
Catastrophe insurance is a type of coverage that protects businesses from financial losses due to natural disasters like earthquakes and floods, as well as human-made issues, which have impacted their finances. It is slightly different from Whole Turnover, as the premium is usually fixed for the year and has a more limited bearing on turnover than what happens for a Whole Turnover policy.
Accumulating a certain amount of bad debt is an unavoidable consequence of normal trading. We can structure a policy that will start paying claims once an agreed level of insured losses has occurred. This can help your business stay afloat after financial struggle.
Catastrophe Policy Structure
The insured percentage is usually 90%-100%, and there is also a level of non-qualifying loss that will exclude smaller losses from ever forming part of the policy. An example of a typical policy structure is listed below:
- Maximum annual liability for claims – £2,500,000
- Annual excess – £250,000
- Non-qualifying loss – £5,000
- Indemnity level – 100%
The premium rates for catastrophe insurance tend to be cheaper than Whole Turnover insurance. This policy is suitable for companies that have a strong balance sheet and are willing to accept a certain amount of bad debt before claims become payable. Other than the difference in structure and administrative procedures, the benefits tend to be very similar to Whole Turnover policies.
Why Use A Broker For Your Catastrophe Insurance?
Working with a broker will mean you access expert and personal advice to find the best cover for your business, whether your finances have been affected by a natural disaster or human interference.
We have over 30 years of industry experience, positioning us to provide the most cost efficient and highly personal service. Catastrophe insurance is just one of our policies, as we also offer a range of different types of trade credit insurance.
When you start a claim, you will be dealing directly with our small team of experts who know every necessary detail about your business and policy. You won’t be speaking to numerous customer service advisors and having to repeatedly explain your situation, as everything will be managed by us.
Contact us today to find out more about our catastrophe insurance.
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Find Out More About Catastrophe Insurance
Catastrophe insurance is a specialised form of coverage designed to protect businesses from financial devastation caused by rare natural or man-made disasters, such as floods, fires or even vandalism. This policy is structured to respond to the widespread losses that exceed the capacity of typical insurance lines. It ensures that a business can recover without facing insolvency, while offering essential long-term financial resilience.
The key benefits of this insurance are centered on providing a crucial safety net against unpredictable disasters that are usually limited by standard insurance policies.
- Protection from catastrophic events
- Avoids financial ruin
- Speeds up recovery
- Helps manage risk for insurers
- Boosts economic stability
- Increases insurance availability
There are different types of trade credit insurance, other than insurance catastrophic coverage to provide the most accurate cover for your specific business and industry. Specific account insurance, export credit insurance, bad debt insurance, international trade credit insurance and whole turnover insurance all give your business different benefits, keeping you protected from missed payments from customers or clients.
At PH Credit Insurance, we have over 30 years of experience providing an exceptional level of service as a trade credit insurance broker and are always ready for you to get in touch with us.
Any business or asset owner in a disaster-prone area needs catastrophe insurance. This specialised coverage is crucial for protecting you after a catastrophic loss that leads to financial ruin and prevents effective rebuilding.
This insurance gives you the financial certainty to recover quickly, as it protects your balance sheet, ensuring you have the capital to rebuild infrastructure. This allows your business to resume operations quickly, which is key to long-term business survival.
If you’re unsure whether your current coverage is adequate for a worst-case disaster, contact a professional to review your options for catastrophe protection.
Registered Office:
4 Pearson Road
Central Park
Telford
Shropshire
TF2 9TX