What Is Credit Insurance?

Credit insurance is a risk management product that protects the accounts receivable of the policyholder from loss caused by default, insolvency or bankruptcy. When dealing with foreign trade, coverage also includes Political Risk events. Political Risk insurance limits your credit exposure to war, civil unrest, and expropriation or nationalization of assets located abroad.

Credit insurance offers benefits to companies of all sizes. Besides protecting the policyholder from loss on receivables, credit insurance can be used to enhance the collateralization of receivables and to offer expanded credit to current or new customers.