Debtors' Insurance

Debtors' insurance is a type of coverage that protects businesses from financial losses if their customers (debtors) fail to pay their outstanding invoices. If a customer becomes unable or unwilling to pay, this insurance helps the business recover some or all of the unpaid amount, reducing the risk of cash flow disruptions. It is commonly used in industries where extending credit to customers is standard, ensuring businesses can maintain stability and continue operations despite potential payment defaults.