Insurers accused of withdrawing cover without checking first

Credit insurers are hurting the fashion industry by withdrawing credit cover without contacting any parties involved in the supply chain, the Times reports.

An article by accountant Bobby Lane, a partner in Shelley Stock Hutter, said: “One financially sound and thriving manufacturer found that its credit insurance had been completely withdrawn on its business via one of its suppliers. There had been no advance warning. The insurers had not contacted any party associated with the business to discuss its performance or financial position, but had clearly based their decision solely on their appetite for the sector.”