Legal expenses insurer DAS has launched a stand-alone after-the-event debt recovery product – Commercial Debt Recovery Après – offering 15% commission.
Policies will be issued individually for debts of more than £500, where credit terms have been exceeded, that are less than one year old, and for which there is no contract dispute.
Premiums are based on 12.5% of any moneys recovered, subject to a minimum premium (including commission and Insurance Premium Tax) of £60. This also includes appeals – where prospects of reversing a decision are good – and defence of appeals.
On full recovery of a £16,000 debt, commission would be £300.
“DAS has considerable expertise that it can bring to bear on a market that is dominated by debt recovery agents and solicitors,” said DAS underwriting & product development manager, David Haynes.
“Though the stand-alone product will take us into new areas, we are seizing the opportunity to promote debt recovery to existing commercial legal protection policyholders, including small businesses.
“Those existing policyholders without the debt recovery option are being targeted at renewal, with promotional letters being sent to both agents and policyholders. We anticipate strong demand.”
DAS already sells a before-the-event product, DAS Commercial Legal Protection Policy.
Pre-event debt recovery cover added to a DAS or MLP Commercial Legal Protection Policy is rated at 0.25% of turnover.