Interview transcript with Mark Hall, VP Elevate Global Insurance
Welcome to Elevate Global Insurance. With me today is Mark Hall, Vice President of Elevate Global Insurance (EGI) who leads our company’s Accounts Receivable Insurance business.
Mark Hall is an industry veteran of Accounts Receivable Insurance with over 22 years experience. He is a licensed insurance professional with the Registered Insurance Brokers of Ontario (RIBO). Mark is also a past director of Receivables Insurance Association of Canada (RIAC) and has been on several committees including the Membership and Nominations Committees.
Q1. Mark, you have 22 years of experience with Account Receivable Insurance (A/R), how would you describe Account Receivable Insurance to someone who has no knowledge?
Accounts receivable Insurance provides protection for losses due to a customer not paying you because they are having financial difficulties or they have filed a bankruptcy proposal
Q2. What is the best example where a customer has been protected by one of your policies when a customer was unable to pay?
A few years back US Steel Canada (formerly Stelco) and owned by US Steel ( a profitable public corporation) filed for CCAA. There were no warnings that this would happen because the parent company was very healthy, however they wanted to exit their obligations in Canada. My client, a transportation company, had coverage of $1 million on this company and when they filed they were owed just shy of $900k. If they hadn’t had A/R Insurance they may have had to declare bankruptcy themselves – US Steel Canada was their largest client and this loss of cash flow could not be replaced. The President of the company was so grateful that we were able to arrange this and continue this coverage for years to come.
Q3. Given the current pandemic and increased risk in the world what is your advice to companies about Account Receivable Insurance, and why and how do they learn more about this?
A/R Insurance not only provides coverage for losses due bankruptcy and financial trouble, but it also provides you with advanced warning of trouble because the Insurer is constantly reviewing data on your clients and is looking for a deterioration in their financial status. Preventing a loss is much better than actually experiencing a loss. Current circumstances dictate a much closer review of customers and this product is better equipped to achieve this, specifically if the company does not have a Credit Department.
Find out more here: https://receivablesinsurancecanada.com/