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Insurance company to cover suppliers against bad debts

Empty supermarket shelves

Suppliers who have had their fingers burnt after accumulating debts with ailing retailers Nakumatt and Uchumi could in future avoid such losses by adopting a new insurance product.

Trade credit insurance, rolled out by Heritage Insurance yesterday, will seek to cover suppliers, manufacturers, and even exporters who supply their goods on credit and risk losing out on payments when the buyer becomes insolvent or for some reason reneges on payment.

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