Credit insurance has been around for quite some time, but many people are not aware of its importance. Credit insurance is a type of insurance that protects the borrower’s credit rating if they default on their loan payments. The purpose is to give them peace of mind and help prevent financial ruin if something goes wrong with their company.
This article will discuss the different types of credit insurance policies available and how they work so that you can determine which one best fits your needs!
Credit insurance coverage is a type of business insurance that will protect your company against unpaid debts. It’s also known as a business credit policy or commercial credit insurance.
The two main types of coverage are:
Primary Credit Insurance
Primary Credit Insurance covers the company’s debts if they fail to pay their bills. It will cover payments made by clients, vendors, suppliers, and government agencies with unpaid receivables with your company up to 100% of the value of the debt owed. The maximum coverage you can purchase is $250 million per incident for each insured event date during any 12 months – so long as there has been no prior claim on this type of coverage for at least 90 days from when it was last purchased.
Secondary Credit Insurance
Secondary Credit Insurance covers the company’s debts if they fail to pay their bills. It will cover payments made by suppliers, clients, vendors, and government agencies with unpaid accounts receivables with your business up to 50% of the value of the debt owed.
Learn more about using credit insurance coverage to protect your business. Contact Trade Risk Group in Yardley at https://www.traderiskgroup.com