Insurance broker launches grain insurance product

Insurance broker launches grain insurance product

Insurance broker launches grain insurance product An insurance broker that specializes in accounts receivable products announced yesterday that it has developed an insurance product in collaboration with the Canadian Grain Commission for licensed grain companies looking to provide security.

The broker, Global Credit Risk Management, said that the new product will compete with existing insurance, letters of credit and security bond products currently on the market.

“It’s just an option for them to consider,” Global Credit Risk Management president John Middleton told The Western Producer. “More competition provides opportunities for people to save money.”

According to The Western Producer, Toronto-based The Guarantee Company of North America will underwrite the insurance policies, to 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,” added Middleton.

Previously, Global Credit Risk Management created an insurance product with the help of Farmers of North America for crops not covered under the Canada Grain Act. At present, the broker is cooperating again with the trade association to develop a product for growers worried that the grain companies they work with offer inadequate security.

Related stories:
Brazeau County announces an agricultural state of disaster
Crop insurance enhanced for Canadian growers