Accounts receivable insurance covers your business against any losses caused by the inability to collect payment from a customer for a variety of reasons. It also helps reduce your risk in an uncertain economy, and limits risks associated with sales growth in new and emerging markets in the United States and abroad.
Situations that benefit from accounts receivable insurance
Examples of when it would be beneficial to have accounts receivable insurance include:
- Damaged or destroyed accounts receivable records, making it virtually impossible to collect payment from customers
- A customer's refusal to accept your goods
- Unforeseen cancellation of permits pertaining to imports or exports
- Cancellation of a contract
Reasons to have accounts receivable insurance
It makes good business sense to invest in accounts receivable insurance because it:
- Protects your accounts receivable dollars and increases your cash flow
- Reduces debts and improves your balance sheet
- Leverages your policy to obtain more cash and free up other assets
- Allows you to offer your customers better credit terms and payment options
- Helps you obtain larger orders and expand into new and emerging markets with assurance
Additional transit insurance options
Depending on the type of small business you own, this goods in transit insurance can be essential to protecting business property. If you clean, repair, service or perform work on the property of others, marine transit insurance may be a smart option. It can cover losses to goods that occur on your premises, in storage or while being transported to or from your premises.