What is accounts receivable insurance?
Accounts receivable insurance covers your business against any losses caused by the inability to collect payment from a customer for a variety of reasons.
Accounts receivable insurance covers your business against losses your business might experience when you can’t collect payment from your customers.
You can benefit from accounts receivable insurance when:
- Your accounts receivable records are damaged
- Import or export permits are unexpectedly canceled
Accounts receivable insurance is part of an intelligent business plan because it:
- Protects your accounts receivable dollars and increases your cash flow
- Reduces debts and improves your balance sheet
- Leverages your policy to obtain more cash and free up other assets
- Allows you to offer your customers better credit terms and payment options
- Helps you obtain larger orders and expand into new and emerging markets with assurance
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.