LONDON: Insurers expect to pay out only £31 million (SR164.33 million) in claims to suppliers hit by the collapse of British construction and outsourcing firm Carillion, a trade body said on Thursday, suggesting most suppliers were uninsured.
Carillion, which built roads and hospitals and ran a host of public services, collapsed on January 15 under the weight of at least £2.2 billion in debt and pension liabilities.
Its collapse has left an estimated trail of £1.2 billion in unpaid bills to thousands of small subcontractors.
“One insolvency can risk a domino effect to hundreds of firms in the supply chain,” said Mark Shepherd, assistant director at the Association of British Insurers, which published the payout estimates.
Firms buy trade credit insurance to cover the risk of not being paid for the goods and services they provide, following issues such as an insolvency.
Trade credit insurers paid £210 million to businesses in 2016 for non-payment claims, the ABI said in a statement.
Insurers expect only £31 million in payouts to Carillion suppliers
Insurers expect only £31 million in payouts to Carillion suppliers
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