As many agents are unfamiliar with this coverage and the markets available for it, we have included information on a respectable market for credit insurance. It would be beyond the scope of this article to include a complete market search of every credit insurance carrier. It is common for people who are not familiar with credit insurance to presume that it is credit life insurance that is being discussed. Credit insurance Credit life insurance is not the same coverage as credit insurance.
Credit insurance pays when a customer or customers default on their debt.
Here is an example, based on a current, real-life situation. A multi-billion dollar manufacturing firm files bankruptcy. One of its suppliers has been supplying bearings to the manufacturer for many years. Common uses Credit insurance can be used by firms doing business only in the United States, or it can be used in international business transactions. Coinsurance or deductible Credit insurance is written either on a coinsurance basis or a no-coinsurance basis.