Insurers have said they will pay more than \u00a330m to businesses owed money by collapsed construction giant Carillion.<\/p>\n
Sums from \u00a35,000 to several million pounds are being paid to firms which had insurance policies against bad debts.<\/p>\n
However, most of Carillion’s suppliers risk getting little or nothing back, as only a minority of firms had the cover.<\/p>\n
The impact of Carillion collapse on suppliers could be devastating as Mark Shepherd at the Association of British Insurers (ABI) explained: \u201cFor all businesses, large or small, bad debt could easily put their day-to-day operations at risk, threatening the jobs of their employees. One insolvency can risk a domino effect to hundreds of firms in the supply chain.\u201d<\/p>\n
The association said that about \u00a331m will be paid out for trade credit insurance, which covers firms against the risk of not being paid if a company that it does business with collapses.<\/p>\n
Carillion, which was the UK’s second biggest construction firm and a major service provider for the government, went into liquidation with a \u00a3900m debt pile and \u00a3600m pension deficit.<\/p>\n","protected":false},"excerpt":{"rendered":"