Preferential payment insurance protects what is rightfully yours!

Preferential payment insurance covers you against preferential payment claims – But what does that mean exactly?

Imagine you have fulfilled an order and received payment for it, only for years later the customer to go bust and an insolvency administrator to start claiming back the money with interest. For many companies, that would be a nightmare situation, but as a Prisma customer, you don't have to worry because Prisma Veto preferential payment insurance covers your receivables with retroactive effect!

Preferential payment insurance – cover that pays off.

Payments can be challenged if the insolvency administrator claims that …

  • you benefited from the payment at the expense of other creditors.
  • at the time of the payment, you were already aware or must already have been aware of your customer's insolvency.
  • the contract concluded with you was disadvantageous to other creditors.

Is your answer “yes” to any of the following questions?

If so, you are at risk of preferential payment claims.

  • Has your customer assigned a receivable to you instead of paying you, or given you a cheque that they themselves were provided by their customer?
  • Have you threatened your customer with legal enforcement or an insolvency petition and did your customer pay you to avoid such measures?
  • Has your customer made a payment after a cheque already bounced or a direct debit was returned?
  • Has your customer made nothing but losses in the months preceding the insolvency? If so, the insolvency administrator can argue that the situation could have been prevented if you had stopped deliveries to the customer.

Generally payments made in the months immediately preceding the opening of insolvency proceedings are challenged, but in extreme cases payments made in the past ten years may be affected.

Prisma Veto provides insurance cover …

  • with retroactive effect for 10 years
  • irrespective of whether you have credit insurance
  • for deliveries on credit and transactions where delivery is concurrent with payment
  • for legal costs incurred defending against preferential payment claims
  • for any interest payments made to the insolvency administrator
  • for all customers based in the EU, Norway, Switzerland and Liechtenstein

You can freely choose an insurance limit of between EUR 75,000 and EUR 2.5 Million.

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