Licensed grain companies have another option to choose from when providing security to the Canadian Grain Commission.
Global Credit Risk Management, an insurance broker specializing in accounts receivable products, has developed an insurance product in conjunction with the commission that is now ready for sale.
The new product will compete with the existing insurance, letters of credit and security bond products on the market.
“It’s just an option for them to consider,” said John Middleton, president of Global Credit Risk Management. “More competition provides opportunities for people to save money.”
The Guarantee Company of North America, a Toronto based insurer founded in 1872, will underwrite the insurance policies.
The policies will be issued directly to the licensees.
“The underwriting would be done on the financial strength of the licensee, so we would need to see their financial statements in order to do that,” he said.
Global Credit Risk Management has developed an insurance product with Farmers of North America for crops not covered under the Canada Grain Act.
It is also working with FNA to develop a product for growers who are worried that a grain company may have inadequate security.