Credit insurance is a product that protects businesses against losses that may arise because their customers are unable to pay. It is a key factor in helping them grow and maximise their profits. It has been designed to allow your company to do business with confidence and peace of mind, while at the same time exploring new markets and products, safe in the knowledge that your business is protected against the risks entailed in credit transactions.
What are the benefits of credit insurance?
- Increased access to financing. A credit insurance policy can serve as a guarantee to a bank as it extends financing to a business.
- Support for strategic decision-making by mapping opportunities and potential risks
- It offers more opportunities for development and growth since it allows you to safely explore new markets and products, because you know you can protect yourself against bad debt.
Which companies can be insured?
All Greek companies (with a Greek Tax ID No.) that:
- generate domestic and/or export turnover over € 1,500,000
- do so with a maximum credit period of 6 months.
Transport insurance offers cover against any physical damage or loss for all goods (imports – exports – internal shipments) carried using all recognised means of transport. It is aimed at businesses importing or exporting goods or transporting them within Greece. Carriers and freight forwarders may also be covered in respect of their liability.
In Greece, the standard clauses drafted by the Institute of London Underwriters are widely used. The clauses frequently used are:
Institute Cargo Clause (C)
The insurance covers loss or damage attributable to:
- fire or explosion
- vessel or craft being stranded grounded sunk or capsized
- overturning or derailment of land conveyance
- collision or contact of vessel craft or conveyance with any external object other than water
- discharge of cargo at a port of distress
- GENERAL AVERAGE
- General average sacrifice
Institute Cargo Clause (Β)
All risks in clause “C” are covered and in addition
- earthquake volcanic eruption or lightning
- entry of sea lake or river water into vessel craft hold conveyance container liftvan or place of storage
- total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craftInstitute Cargo Clause (Α)
All damage or losses to the goods transported are covered apart from those expressly excluded. In effect it is cover against all risks.
Artworks insurance provides cover for individual works of art or collections during transportation, exhibition, storage or during such time as they are in the home.
An artworks insurance policy can cover:
- Private collectors with works of art or high value antiques in their home
- Art exhibitors at art galleries
- Art shops
- Antique shops
Some of the forms of cover available are:
- Fire, lightning, smoke, explosion
- Flooding, Storms, Hurricanes.
- Breaking and/or leaking pipes
- Theft caused by burglary or robbery
- Terrorist acts, Malicious Damage, Vandalism
- Falling aircraft, vehicle collisions
- All Risk Insurance
Robert Mueller, FBI General Manager 2001-2013, said “There are only two types of companies: those that have been hacked, and those that will be. . His words illustrate the degree to which businesses are exposed to online risks and their vulnerability to those risks.
Hacking of electronic systems and leaking of confidential information are a daily phenomenon in the world of information and IT systems. Cyber Insurance covers the financial consequences of such cyber attacks and offers protection to organisations and businesses so they can limit their risks.
The main elements of such insurance cover are:
- third party liability cover in respect of third parties who suffered harm due to loss of their personal data by the company to which that data had been provided
- System security incident breach and loss of personal data management costs and services
- Suspension of business – Coverage for loss of income due to suspension of business activities after system breaches and loss of confidential data.
- Access to a Security Breach Incident Management Team whose members have dealt with a large number of such incidents worldwide
- Administrative fines – this covers the fines imposed by the administrative authorities as a result of a security breach and loss of personal data
- Cyber-bullying – Cases of cyber-bullying are managed by teams of experts and also covers Bitcoin ransom payments if resolution of the problem is not possible
- Money Fraudulent Transfer – this covers sending money to an unknown recipient after receiving falsified documentation by email
- Telecom Freaking – this covers the cost of telecommunications charges resulting from illegal access to and use of a business’ switchboard.
Which companies should have Cyber insurance?
Cyber insurance is aimed at any company that manages electronic data or has an internet presence, regardless of its size or the sector it operates in. Examples of such companies include:
- Telecommunications – Internet Services Providers
- Cloud Providers, e-commerce platforms, search engines
- Health service providers, hospitals, clinics, diagnostic centres
- Financial Service providers
- Securities firms and insurance companies
- Energy providers
- Transport companies
- Educational institutes
- Retailer chains
- Law firms
- Consultancy firms
- Companies entering into transactions with credit, debit and loyalty cards
- All companies that want to protect their corporate network from the financial consequences of a distributed denial of service (DDoS) attack.
What sanctions can be imposed on businesses under the GDPR?
Under the General Data Protection Regulation (GDPR), which has been in force since 25.5.2018, companies that fail to maintain the security of their customers’ personal data:
- are obliged to report any personal data breach within 72 hours of it being identified.
- are at risk of administrative fines which could reach up to € 20 million or up to 4% of their annual turnover, whichever is higher.
- are obliged to compensate customers whose data was not kept secure.