Accounts receivable coverage, may refer to a type of business insurance coverage that protects a company from losses that may result from a customer's inability to pay for goods or services. This type of coverage provides financial protection to businesses in the event that their customers are unable to fulfill their financial obligations.
Accounts Receivable Coverage in More Detail
Accounts receivable coverage, also known as credit insurance, is typically provided through a third-party insurer. This type of coverage can be used to cover a variety of risks, including non-payment, slow payment, late payment, bankruptcy, and fraud.
Accounts receivable coverage typically includes a variety of options that can be tailored to meet the needs of a business. These options may include coverage for single customers, entire accounts, and/or a combination of the two. In addition to the risk of non-payment, some policies may also provide coverage for other risks, such as theft or natural disasters.
Accounts receivable coverage is an important form of protection for businesses, as it helps to protect them from losses that may result from customers who are unable to fulfill their financial obligations. This type of coverage can help businesses maintain their liquidity and protect their profits.
