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VIDEO: Can trade credit insurance help to keep the supply chain moving?

On Tuesday 23rd June, partner Emma Digby was in conversation with Steve Hamstead and Mark Smith from AON along with Ward Hadaway commercial lawyer Nathan Bilton in a webinar titled Can trade credit insurance help to keep the supply chain moving?

The insurance market is under untold pressure as a result of the pandemic, and in such times there is a risk that insurers will cancel or reduce credit lines, particularly in certain high risk sectors such as retail. However the Government has stepped in to effectively underwrite the existing trade credit insurance agreements, and to keep trade supplies moving. Will this be enough?

In this webinar, we discussed:

  • the Government backed scheme and how it will operate
  • the prospects of obtaining insurance going forward, and whether it will become too cost prohibitive
  • could the new legislation put your business at risk and jeopardise your insurance cover if you cannot cancel a contract when you are not getting paid for your goods or services
  • the Brexit effect, and how this will affect the insurance market
  • protecting your business with proper risk assessment processes and paperwork

Related FAQs

Is it possible to proceed with a hearing in person for any COP matters?

Any hearings attended in person will need to be approved by the judge hearing the matter, if necessary, in consultation with the regional lead COP judge. Such requests are highly unlikely to be granted during COVID-19 unless there is a genuine urgency. However, it is deemed to be appropriate matters are likely to be adjourned on the basis that a remote hearing is not possible and a hearing in person is not safe or possible.

What happens if an employee refuses to attend work because they are afraid of being exposed to COVID-19 particularly the new more transmissible strain?

An employee can refuse to attend work but their refusal to do so will have to be based on a reasonable belief that their health and safety is in danger.  Whether or not their refusal is reasonable will take into consideration factors such as the employee’s own health and whether they are at a higher risk of becoming seriously ill if they contract Covid-19 and the steps their employer has out in place to mitigate the danger of contracting Covid-19 at work.

In such circumstances where the employee’s belief is deemed to be reasonable, they will be entitled to stay at home and receive full pay.

If an employee is subsequently dismissed for refusing to attend work in these circumstances, they may be able to bring a claim for unfair dismissal.

What type of matters are the Courts still dealing with?

Civil Court listing priorities, last updated by HMCTS on 24 April 2020, categorise the Court’s work into the following:

Priority 1 – work that must be done: this includes any applications in cases listed for trial in the next 3 months, any applications where there is a substantial hearing listed in the next month, all multi-track hearings where parties agree that it is urgent (subject to triage).

Priority 2 – work that could be done: Infant and Protected Party approvals, Applications for interim payments in multi-track / personal injury / clinical negligence cases, Applications to set aside Judgment in default, Preliminary Assessment of costs.

The full guidance can be found at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/881019/Civil_court_listing_priorities_24_April_2020.pdf

Are there any limitations on who can be furloughed?

 

Employees on any type of employment contract including full-time, part-time, agency, flexible or zero hours and foreign nationals who are eligible to work in the UK on any visa can be furloughed subject to the following excluded categories:

  • Anyone who was not employed prior to 30 October 2020
  • Anyone for whom you haven’t made a PAYE Real Time Information submission to HMRC between 20 March 2020 and 30 October 2020.
  • Employees who are working but on reduced hours or for reduced pay
  • Employees currently receiving SSP (see FAQ on SSP and self-isolation below)
  • Public sector employees
  • Employees of businesses or organisations in receipt of public funding for staff costs (except for those who are not primarily funded by the government and whose staff cannot be redeployed to assist with the Covid-19 response)
What happens if a patient is admitted to hospital during the pandemic?