Insurance broker Lockton is expanding its Trade Credit and Surety insurance division with the launch of a new and exclusive product for commercial property owners.
The product will protect landlord's income in the event of a tenant becoming insolvent and being unable to meet rental payments by providing cover for rental income owed prior to insolvency, as well as the benefit of income protection post insolvency.
Lockton said the policy is tailored to suit the requirements of each client and has been designed to cover whole portfolios or individual properties based in the UK.
It added that for many property companies, the benefit of the financial analysis for each tenant that is provided, will act as a valuable risk management tool, complementing their existing credit management procedures.
Richard Miller, trade credit & surety account manager, Lockton said: “We believe that there is an increasing demand for this coverage as our research has shown that insolvencies are on the increase, as has been illustrated by the recent demises of Powerhouse, Music Zone, Card Warehouse and Cardfair in addition to the previous collapse of Courts and Allders.”
Paul Rowland, trade credit & surety divisional director, Lockton, added: ”With the risk of more companies falling into insolvency the ability for property companies to protect their income and investment returns will increase. Commercial Property Credit Insurance will become an essential tool for commercial property owners to protect their investments and financial responsibilities.”