Accounts Receivable Insurance

Accounts Receivable Insurance

An insurance policy providing coverage in the event a company is unable to collect on its accounts receivable, especially under certain, specified circumstances. Accounts receivable insurance helps a company maintain regular cash flow. See also: Allowance for Bad Debts.
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WTR previously offered an accounts receivable insurance product on a non-admitted basis through a different insurer.
This is where the need to consider accounts receivable insurance comes in,
M2 EQUITYBITES-April 19, 2017-Allied World declares availability of Accounts Receivable Insurance in expanded areas in North America
The coverage goes by many names: del credere insurance, business credit insurance, export credit insurance, accounts receivable insurance or short-term credit insurance.
At around the same time, we learned that premiums and terms for accounts receivable insurance had improved from where they were in the '90s.
Citizens Bank recently assisted the company in exploring foreign accounts receivable insurance and trade letters of credit.
Portfolio Entertainment chose to cut its risk of non-payment by foreign buyers by protecting the film production company's foreign contracts with accounts receivable insurance. And Farm World Equipment sought foreign-buyer financing to secure a multi-million dollar sale in the Ukraine.
Most of the smaller exporters doing business with the Emerging Exporters Team are looking for accounts receivable insurance, which covers up to 90 per cent of their losses if a foreign buyer doesn't pay, provided the exporter has fulfilled its contractual responsibilities.
M2 EQUITYBITES-June 16, 2016-Allied World announces availability of Accounts Receivable Insurance in US
Source: Extracted from the GSCFM Class of 2012 group project on accounts receivable insurance. See coverage of this year's session on pp.
Since accounts receivable insurance is a fluid product that changes as the client's portfolio changes, the broker has an ongoing role in servicing the client's needs.
Accounts receivable insurance (or credit insurance) is a rare type of insurance because it can do exactly that--it helps you, the policyholder, adjust your business practices in order to avoid bad-debt losses from occurring.
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