A credit insurance policy has been developed exclusively for the construction industry by Gerling NCM after the credit management group warned that 2,000 construction were at risk due to poor debt management.
Last year 2,334 construction companies failed with a almost a third of these entering receivership because of the impact of debts and cashflow problems.
Gerling NCM's trade sector development manager Tony Garner said: "If you operate on a margin of 10% and a customer goes bust owing you £100,000 you need to complete a £1m contract just to make up the loss.
"That's why we have seen bad debts take out even the major players."
