Trade Credit Insurance: Maximizing Coverage, Preserving Cash Flow, and Fending Off Boilerplate Denials

This program has been cancelled

A live 90-minute CLE video webinar with interactive Q&A

Tuesday, April 27, 2021 (in 6 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

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This CLE webinar will review how to maximize coverage under trade credit insurance and avoid hidden and unique pitfalls. The panel will offer insight into how "default" is defined in the policy and whether late or partial payment may trigger coverage. The program will review the allocation of risk under these policies, the importance of honoring the representations and warranties, and how to respond to the most common denials of claims.

Description

Trade credit insurance is insurance for non-payment of commercial debt. It insures what is usually a company's most valuable asset: its accounts receivable. It is a crucial tool for businesses whose income stream depends heavily on accounts receivables. Lenders or investors may require this type of coverage as a condition for funding.

Claims are scrutinized, particularly when insurers are receiving an unusually high number of claims. Insurers will insist on strict compliance with the policy's representations and warranties and requirements for consultation before settling with defaulting customers/counterparties. Even what constitutes a "default" triggering coverage is often challenged.

Policyholders and their counsel must be proactive in understanding the credit insurance policy's key provisions and resolve ambiguities on the front end. Counsel must be prepared for challenges to coverage based on alleged failure to disclose required information and the insured's alleged prior knowledge of conditions or defects in the underlying contract. Insurers, however, are not required to cover risks they did not assume.

Listen as this experienced panel of coverage attorneys guides counsel through common defenses and challenges to coverage, best strategies for defeating them, and strategies for avoiding coverage misunderstandings.

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Outline

  1. Overview of credit insurance
  2. Understanding key provisions in the policy
  3. Coverage issues and defenses

Benefits

The panel will review these and other key issues:

  • What risks does credit insurance cover?
  • Are policy proceeds available if the account obligor files bankruptcy?
  • If the policyholder files bankruptcy, are policy proceeds the property of the bankruptcy estate?
  • What are the most common challenges to coverage?
  • When can insurers be sued for bad faith if they fail to pay?

Faculty

Gibbons, John
John A. Gibbons
Partner
Blank Rome

Mr. Gibbons is a partner in Blank Rome’s policyholder-only insurance recovery practice, formerly the insurance...  |  Read More

Halprin, Peter
Peter A. Halprin
Partner
Pasich

Mr. Halprin represents commercial policyholders in complex insurance coverage matters with a focus on recovery...  |  Read More

Selarnick, Alexander
Alexander Selarnick
Attorney
Cooley

Mr. Selarnick is an attorney at Cooley LLP and represents corporate policyholders from the earliest stages of insurance...  |  Read More