TL Risk Solutions has launched a product aimed at protecting commercial landlords from rising insolvency.
The risk specialist says with UK consumers now the most indebted in Europe, recent statistics have shown a rise in insolvencies in the first quarter of 2007 of nearly 24% on the same quarter last year.
It says as well as having devastating consequences for those involved, there is the inevitable impact of insolvency on associated businesses, particularly the landlords and managing agents.
TL Risk Solutions is currently working with an insurer to provide cover for exactly this type of risk, should a commercial tenant become insolvent.
Gavin McLaren, business manager for TL Risk Solutions Credit division, says: “This form of cover provides landlord’s with protection against a loss arising from the insolvency of a commercial tenant.
“As well as covering a loss arising from unpaid rent, cover is extended to include up to twelve months loss of rental income whilst the property is vacant.
“In this way it secures a valuable income stream and maintains income whilst a new commercial tenant is sought or a property refurbished.
“With the recent introduction of the Tenancy Deposit Scheme for private landlords we are doing all we can to make sure that our landlord indemnity scheme will cover any issues that may arise should the deposit scheme be extended to commercial properties in the future.
“There are also major benefits to the tenant as there is the potential to replace cash deposits thereby freeing up working capital.”