Accounts receivable insurance is a financial product that safeguards businesses against losses from customers failing to pay their invoices. This insurance covers unpaid invoices up to a specified credit limit, helping businesses maintain cash flow even when clients default. Accounts receivable insurance is an invaluable asset for businesses aiming to fortify their balance sheet, secure cash flow and profits, and stimulate growth. While it entails costs, the protection and advantages it provides, from guarding against bad debts to enhancing financing avenues, significantly outweigh its expense.

• A carrier’s agent can only advise you as to that carrier’s specific contract.
• Key accounts coverage focuses exclusively on your largest buyers, the ones whose default would create the most financial damage.
• Named buyer policies are helpful for companies with concentrated client risk.
• Many policies cover between 80% and 95% of the eligible loss rather than the full amount to encourage proper credit management practices.
• In such a case, it may be unable to bill customers, track who has or hasn’t paid, or determine the amounts owed.
• That is losing a customer while also not getting paid for services rendered or product delivered.
• This is where pairing insurance with AR automation creates a powerful combination.

How is factoring receivables different from accounts receivable financing?

After working together to elect the best policy at the most competitive price, we continue to work with and negotiate with the insurance carriers as your needs evolve. With streamlined workflows that limit delays and process duplication, you can keep your various revenue streams running smoothly. Don’t leave your financial What is bookkeeping security to chance; reach out to ARI Global today, and together, we can fortify your business’s financial foundation for a more resilient tomorrow.

Audit insurance A/R processes to ensure compliance and identify inefficiencies

Complete Insureon’s online application and contact one of our Retained Earnings on Balance Sheet licensed insurance professionals to obtain advice for your specific business insurance needs. Hear from customers like you who purchased small business insurance. Upgrading your invoice management process might eliminate the need for external solutions entirely.

A Guide to Trade Credit Insurance

Single buyer coverage insures against default from that specific buyer, though you can maintain multiple single-buyer policies for different customers. Many companies spend considerable effort protecting against property damage and other unpredictable risks while completely overlooking their substantial AR exposure. This oversight creates a dangerous blind spot since cash flow interruptions from customer defaults often trigger ripple effects throughout your entire operation.

Single-Buyer Policies

Our solutions for P&C brokers show how collaboration ensures clients receive complete protection while brokers maintain strong relationships. For example, imagine your small business made $450,000 in the year before a covered loss. Your average monthly receivable would be $37,500, which would be used to determine your insurance accounts receivable insurance payout.

Healthcare facilities struggle to stay profitable amidst reimbursement cuts and ever-evolving regulations. A/R, or accounts receivable in healthcare, is one of the many metrics that need constant monitoring to avoid flushing your rightful payments down the drain. As an insurance broker rather than an insurance agent, Securitas Global Risk Solutions is able to apply to multiple carriers to find the best contract, with the most coverage, for the least cost.