Trade Credit Insurance also known as Credit insurance is a risk management tool that covers the payment risk resulting from the delivery of goods or services. Under this policy credit insurer usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of insolvency, bankruptcy or protracted default. A credit insurance is a type of business insurance designed to protect businesses from commercial and political risks that may impact the finances of the business. Such risks can be beyond the control of businesses or individuals.
