French insurer Euler Hermes reduced its cover to the value supermarkets suppliers during the summer according to the Sunday Times. Rival insurer Atradius is reportedly following suit and mulling reduction in cover it provides suppliers.

Suppliers use the insurance cover to protect against any risk of a customer going under after an order has been placed but before payment has been received.

The decision could have a knock-on effect on the supermarket chain if suppliers demand payment upfront.