We aim to make our policy documents as simple as possible to understand, although the legal terms below can be confusing, so here it is in plain English.
That is the amount the debtor still hasn't paid when they become insolvent. For example if an insured invoice value is £50,000 and the debtor has already settled £10,000 at the time of them becoming insolvent, we will calculate the claim value on £40,000 (£50,000 - £10,000).
This is the person or organisation who will receive the claim payment. A Loss Payee is usually requested by organisations that factors or funds invoices, to ensure they will get the money they loaned back.
Maximum Policy Limit
That's the invoice value minus the uninsured percentage of 10%. So as above, if an insured invoice value is £50,000, we will pay out £45,000 in case of a successful claim. This means that the Maximum Policy Limit is £45,000.