Credit Insurance

In the maritime context, credit insurance is a risk management product offered by insurance companies to businesses, including those in the shipping industry. It is designed to protect businesses against losses that are due to customers' non-payment of trade credit debts. These debts can arise due to a customer becoming insolvent or failing to pay within agreed terms and conditions. In the maritime industry, credit insurance is particularly important due to the high value of goods transported and the complex nature of international trade. It provides a safety net for shipping companies, allowing them to manage the risks associated with extending credit to customers. It can cover domestic and international trade, and is often used in conjunction with other risk management strategies. Credit insurance can also enhance a company's borrowing capacity with its lenders, as the insurance serves as a form of collateral. It is a crucial tool for maritime businesses in managing their accounts receivable, ensuring cash flow stability, and fostering confident expansion into new markets.