Nova Business Finance has launched a new payment protection insurance to meet the needs of independent finance companies.

The policy protects policyholders if they are unable to make loan repayments due to redundancy, illness or death during the term of the loan.

The premium is usually paid up front and is added to the loan amount.

It is underwritten by Hitachi Credit Insurance Corporation – a wholly owned subsidiary of Nova's parent company, Hitachi Credit UK.

HCI has achieved the Crystal Mark for Clarity for its policy wording from the Plain English Campaign.