An accounts receivable insurance policy allows companies to feel secure in extending more credit to current customers, or to pursue new, larger customers that would have otherwise seemed too risky. The protection it provides allows a company to increase sales to grow their business.
Accounts receivable: Loss or damage as a result of accident or misfortune to the insured’s books of account or other business books or records at the premises or at the residence of any director, partner or employee or the premises of any accountant of the insured, in consequence whereof the insured are unable to trace or establish the outstanding debt balances in whole or part due to them
Accounts receivable insurance protects a company against financial losses caused by damage to its accounts receivable records. This type of coverage is important because the loss of accounts receivable records may render a firm unable to collect money customers owe it.