Protection against insolvency contestation

Entrepreneurs may know the problem: The receipt of money has long been recognized, but then post comes from the insolvency of a customer. He wants the money back, because it belonged to the bankruptcy estate. What to do? Coface customers can now find advice and protection for their credit insurers.

For Coface provides in addition to credit insurance to an insurance dispute. They are not only for new customers, even many years policyholder can supplement their agreement with it.

The problem, the Coface encountered with the new solution is complex: The disputing a claim for creditor’s discrimination is possible up to ten years if the creditor may have known when paying his debtor that by other creditors at a disadvantage. In such a case the supplier has to pay back the amount you have paid money at the request of the liquidator. A high risk of suppliers: For the liquidator does not prove that the supplier was aware of the difficulties of his customers.
When contesting insurance picks

Actually, the company concerned with a credit insurance also because on the safe side. Firstly, because it may be based on the credit assessment of the insurer. To the existing limit of policyholders against the insolvency administrator can argue that it was confirmed by the limit of the credit insurer in the positive credit rating of its customer. Secondly, the credit insurance covers the resurgent demand. "However, it may lead to cases where the agreed sum insured is insufficient at the time of challenge," explains Dr. Thomas Götting, Regional Commercial Director of Coface. "In these cases, attacks contesting insurance." It offers not only protection in the worst case by the damage performance. It also covers the cost of legal defense against temptation.


Contestation insurance includes coverage gap

In general, the protection of the basic treaty, even in a bankruptcy dispute is sufficient. At least conceivable, however, is one such example: A company serves its customers as part of its credit insurance limits per month for each 100,000 euros. New goods the customer only after payment of the previous delivery. This seems to be eliminated for the policyholder, the default risk for all deliveries. There are only 100,000 euros, open, and which are always covered by credit insurance.

If the customer, but insolvent and the insolvency administrator are challenging every 12 deliveries of the year in accordance with § 133 Insolvency Act to succeed, then suddenly an open balance of EUR 1.2 million is in the room. And because temptations up to ten years are retrospectively, the supplier feared bad debt losses in the millions. With the traditional credit insurance would be of a maximum of 100,000 euros as part of the "resurgent Limits" insured. This "shortfall" to close the contestation insurance.