Credit Insurance, also known as Accounts Receivable Insurance or Trade Credit Insurance, provides the policy holder with a guarantee against non-payment, bad debt, and slow payment for all accounts receivable. When an organization leverages credit insurance to cover their accounts receivable, the transfer of risk of non-payment, bad debt, or slow payment moves to the insurance provider, therefore, eliminating the risk held by the organization in question.
Credit Insurance assists organizations in expanding their business by extending larger credit lines to existing customers as well as enabling organizations to sell to new customers without taking any risk of non-payment or credit default. Credit Insurance is often used as a tool to provide a "guarantee" on the decision making of organizations' credit departments by providing easy access to large information databases.
Due to the customizable nature of the coverage offered by the various carriers, Credit Insurance is a very unique policy. Depending on the needs of the organization, as well as their portfolio of accounts receivable, different types of coverage, rates, and structures are available. FGI Risk Services has professionals with years of experience working with both customers and underwriters of the various credit insurance policies to ensure that the right coverage is provided to its customers at the right price point.