Insurance serves as a vital safeguard for companies that routinely sell goods or services to a wide array of customers on post-paid or credit terms. This type of insurance functions as a guarantee for the payment of invoices, ensuring that businesses receive the funds owed to them, even in situations where customers delay payment or fail to pay altogether. By covering potential losses arising from unpaid invoices, this insurance helps maintain the company's cash flow, allowing for uninterrupted operations and financial stability. For businesses that have a large and diverse customer base, the risk of non-payment can pose significant financial challenges. This insurance mitigates those risks by providing a reliable backup, ensuring that the company can continue to meet its own financial obligations, invest in growth, and operate without the constant worry of cash flow disruptions. Additionally, this insurance can enhance the company’s creditworthiness and reputation, as it demonstrates a proactive approach to managing financial risks associated with credit sales.

Factors affecting the cost of the policy:

• The amount of insurance coverage;
• volume of company turnover;
• distribution of turnover by country;
• number of counterparties;
• financial condition of counterparties;
• amount of credit limits granted and their distribution by payment terms;
• number of insurers;
• amount of debts collected;
• procedure for monitoring insurers and the company's debt collection process;
• the amount and timing of claims payments under the policy;
• the number of previously paid insurance claims.