Accounts receivable insurance

Accounts receivable insurance,

Definition of Accounts receivable insurance:

  1. Accounts receivable insurance protects a variety of situations involving a company's accounts receivable records. First, it will cover a firm for sums that can't be collected from customers due to records being damaged or destroyed by a covered peril. Accounts receivable coverage will also cover a policyholder for interest charges on a loan obtained to offset uncollected sums.

  2. 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. .

  3. Extension of a fire insurance policy whereby it covers the sums owed which become uncollectible due to loss of records.

Meaning of Accounts receivable insurance & Accounts receivable insurance Definition