PCG Cover - Does It Include Direct Clients Going Bust?

[DeludedAussie]

I am thinking of taking out a PCG policy and was reading the terms of the insurance

Does anyone know whether the "Business Failure of the Agency" as defined here

Agency failure and default insurance | PCG

applies to going direct with a company?

[northernladuk]

I am thinking of taking out a PCG policy and was reading the terms of the insurance

Does anyone know whether the "Business Failure of the Agency" as defined here

Agency failure and default insurance | PCG

applies to going direct with a company?

Is there an agent involved???

Jesus

[malvolio]

WNLUKS. I'm not sure you can insure against direct risks in any shape or form, but you can always use an invoice factor to minimise the exposure.

BTW, what's a PCG Policy? They don't sell policies, they sell memberships. they are a not-for-profit, non-commercial representative body. You don't even get insurance, they insure themselves against the costs of supporting their members.

Why is that so hard to understand...?

[prozak]

Holy Cow. They sound awesome.

How would one join this brilliant organisation?

[prozak]

I used this brilliant thing that's a knock off of altavista called google and found this:

Home | PCG

You can join from 120+VAT per year.

Bargain of the century.

[Sockpuppet]

I'm not sure you can insure against direct risks in any shape or form

You can. Its just not worth it.

In theory you can insure against anything. However past a certain point the premiums don't make it worth it.

[DeludedAussie]

Is there an agent involved???

Jesus

No theres no agent involved.

Why would having an agent in the middle make much of a difference?

Besides what exactly is an agency? Its just another limited company. So if PCG are prepared to insure the end client (via the agency) why would they not be prepared to insure the client directly who will probably be more credit worthy

[northernladuk]

No theres no agent involved.

Why would having an agent in the middle make much of a difference?

Because the policy is insuring you against agency failure. Kinda makes a huge difference.

[TheFaQQer]

No theres no agent involved.

Why would having an agent in the middle make much of a difference?

Besides what exactly is an agency? Its just another limited company. So if PCG are prepared to insure the end client (via the agency) why would they not be prepared to insure the client directly who will probably be more credit worthy

Why don't you ask the PCG?

The PCG aren't prepared to insure the end client (via the agency), their insurance is against the agency going bust. Presumably, agencies either manage their risk, or insure against the client going bust. And what makes you think that the client would be any more credit worthy than an agency?

[v8gaz]

Why don't you ask the PCG?

The PCG aren't prepared to insure the end client (via the agency), their insurance is against the agency going bust. Presumably, agencies either manage their risk, or insure against the client going bust. And what makes you think that the client would be any more credit worthy than an agency?

Its not that PCG aren't prepared to insure against client default, it's just that they haven't got the cover at an appropriate cost - yet. I believe that they are currently looking at how they can add this to the plus package.

To be fair, as a contractor I can get a reasonably good view of a direct client from the credit agencies (PCG discounts available!) but an agency with typical exposure only needs one of many clients to go down in order to screw their cash-flow. I don't even know who the clients are, never mind credit check them all.