Hollard Commercial Insurance (HCi) has announced new initiatives such as a credit terms extension for brokers to support SME clients through the current economic slump.

The measures take immediate effect and will apply to all existing policyholders until December 31, the commercial insurance brand of Hollard says.

“HCi recognises that the months ahead are going to be a trying time for our mutual clients, the insurance industry and the broader economy,” the business says in a note to brokers. “Unfortunately, many small to medium businesses will experience severe financial headwinds during this time.

“In light of this, we have put together a number of initiatives to assist [brokers and their] clients, with current HCi policies, where we can.”

The five-point support plan is made up of a credit terms extension, short-term renewal option, assistance for unoccupancy, removal of restrictions on temporary removal of stock and contents, plus an extension to the liability section to allow trading on footpaths.

HCi says the credit terms extension for brokers mean they will get 120 days instead of 90 to help clients who are struggling to pay premiums.

“We are providing this option to [brokers] to use on a case-by-case basis to assist those clients during this period,” the company says.

“Where a client has a claim during this 120-day period and the premium has not been paid, HCi's current procedures will remain in place and either the premium can be paid, or we can deduct the amount from the claim payment.”

For more on the support measures, click here.