There are major differences between credit insurance policies with traditional cancellable cover and those with non-cancellable cover.
The main difference is that with a cancellable cover the insurer has the possibility to withdraw this cover in whole or in part. He may decide to do so on the basis of adverse information on the debtor, the sector or the country for which the cover is taken out or simply because of a policy decision. This decision is unilateral with the insurer. From the moment of withdrawal, the cover will lapse.
With a non-cancellable cover, as offered by Mercury, the cover is fixed for the entire agreed term. The cover cannot be withdrawn during that agreed period – usually a year – even if the circumstances change. The insurer and the insured together agree on the credit management procedures. The insurer can inform the insured about any adverse information, but the choice to terminate or maintain the cover remains with the insured.