Credit Insurance
Description and purpose
Credit insurance covers risks associated with debtor insolvency, protecting creditors against financial losses caused by the non-payment of commercial loans. This insurance is crucial for companies that provide credit to their customers and want to protect their income from payment risks.
Credit insurance covers risks associated with debtor insolvency, protecting creditors against financial losses caused by the non-payment of commercial loans. This insurance is crucial for companies that provide credit to their customers and want to protect their income from payment risks.
Target audience
Companies that provide commercial loans, including export credits, installment sales, mortgage loans, and agricultural loans.
Companies that provide commercial loans, including export credits, installment sales, mortgage loans, and agricultural loans.
Coverage and risks
- Debtor insolvency – protection against debtor non-payment of receivables.
- Export credit – safeguards companies that sell products or services abroad.
- Installment sales – coverage for the risk of non-payment by customers purchasing goods on installment plans.
- Mortgage loan – protection for lenders offering mortgage loans if debtors fail to meet their obligations.
- Agricultural credit – insurance against risks specific to the agricultural sector, such as crop losses or adverse weather conditions.
Types and options
- Commercial credit insurance: covers non-payment risks in commercial transactions.
- Export credit insurance: protects exporters against risks specific to international transactions.
- Installment sales insurance: covers the risk of non-payment for goods purchased on installment plans.
- Commercial credit insurance: covers non-payment risks in commercial transactions.
- Export credit insurance: protects exporters against risks specific to international transactions.
- Installment sales insurance: covers the risk of non-payment for goods purchased on installment plans.
Benefits
Financial protection against non-payment risks, revenue security, and reduced financial impact of debtor insolvency, providing financial stability to companies offering commercial credit.
Financial protection against non-payment risks, revenue security, and reduced financial impact of debtor insolvency, providing financial stability to companies offering commercial credit.
