What credit insurance providers and products should beverage businesses use, and what do they typically cost?

Credit insurance is viewed as essential protection against wholesaler failure in the drinks trade. Members have seen it pay out significantly: when Waverley went bust, one member recovered 90% of owed money through their policy (with a 10% excess); when MCW nearly collapsed due to unpaid HMRC duty, credit insurance gave peace of mind across the group.

**Providers and brokers:** - Main players are **QBE**, **Atradius**, and **Euler**. Members recommend going through a broker rather than direct; one member mentioned a contact at **Carole Peachey** (via Rankin Cork, sales@rankincork.co.uk), though they note broker contact forms are sometimes the easiest route. - If you use **invoice discounting**, your bank may offer a credit insurance product that can be bolted on.

**Costs:** - One member reported securing cover for approximately **0.2% of annual revenue** for the next 12 months, paying out **90% of invoice value** on debtor failure. - Rates are expected to be **higher at the moment** due to economic uncertainty and nervousness about the hospitality sector post-COVID. - Cover is "quite expensive depending on cover levels required."

**Practical benefit:** - Having credit insurance also gives you leverage with slow-paying customers: you can tell them "the credit insurer won't give me more credit on your account" to encourage payment or justify withholding stock.

**Pooling opportunity:** - Members have explored whether businesses can pool together to achieve better economies of scale on premiums, with at least one member running comparisons between single-business and pooled-risk options. Contact members directly if interested in joining a group quote process.