Openfield Credit Insurance

[Robert]

With their recent company restructure, who is going to go with their credit insurance cover facility @ £0.50 per tonne for 90% of claim value. Is it actually necessary with a company of their nature? Thanks!

 

[Wheatland]

I'm wondering this too!

 

[Sussex Martin]

With prices at £150 per tone a 22 ton load owes you £3,300. Insurance would cost £11 or .33% which is a small sum for peace of mind.
Or in the words of Clint Eastwood 'Do you feel lucky punk'?

 

[yellow belly]

Need to study the latest members agreement but if nothing has changed
I.e. Still a coop ,do not take grain in principle and act as agent and
The risk management of Openfield has not changed.?
Not planning to take up the insurance as Openfield act as agents for members grain
For members they pay 60% in advance of movement and 80%on movement will that cost much more in interest

 

[yellow belly]

After consulting Openfield there is no change in the relationship between member and the cooperative still market grain as an agent of the member with a pool that has a separate bank account from the company
The risk management regime the operate under has not changed

The change in structure that was set up after Viking cereals insolvency with 1 company replacing the 2 will save half a million £s of extra cost
I will not be taking out the 50p a tonne insurance as I believe the directors have enough checks and balances in place to protect members
There is no incentive for any staff to take risk to increase their income

 

[Robert]

Thanks - helpful insight.

 

[Russell001]

I think it is necessary.

 

[Badshot]

Everything is insured as it's sold to the end user, this bit of insurance was covering openfield pool from openfield going bad as far as I can ascertain.
I'll not be taking it out, and openfield aren't expecting anyone to but felt they should offer it.
It's a hangover of a merger with another merchant, I was told but can't remember, maybe centaur? Probably wrong so don't quote me on that.