Customer credit insurance (CCI) is a type of insurance that helps businesses manage their debt risk. Companies can use this policy to protect accounts receivable in case of losses due to customers’ death, disability, or involuntary unemployment. CCI insurance can be very beneficial because it helps keep your business financially stable while protecting your customers from losing money they owe you.
CCI protects accounts receivable.
Customer credit insurance protects your business if a customer dies, becomes disabled or is unemployed. The coverage will help you receive payment from the customer’s estate or disability insurance provider. The CCI policy protects accounts receivable without making any withdrawals from credit sales.
This type of cover does not require a monthly premium and is calculated based on risk evaluation and sales volume. You can receive monthly payments, which can be deducted from an insurance claim if required by your customer with the consent of their heirs.
Customer credit insurance takes the form of an indemnity bond that pays out if the person you’re working with defaults on payments or goes bankrupt without paying what they owe. If they don’t pay up, you will still receive compensation from your insurer, even though it might take longer than usual!
Coverage without withdrawing any money from credit sales.
CCI insurance typically does not require any money from the customer. CCI is not a loan, credit card or line of credit; it is simply an insurance policy that covers losses from bad debt.
CCI does not require collateral, a credit check or cash advances.
As long as you can pay off the outstanding balance on your account, you will receive complete coverage for that transaction without worrying about repayment options or interest rates on the amount owed.
This makes CCI an excellent option for those who want to protect their business but want to avoid the hassle of managing a financial transaction like this or having to pay anything extra in fees or interest rates on top of what they already owe their suppliers or vendors.
When you buy insurance, you pay a premium. The premium is the amount you pay for coverage against a specific risk. It’s calculated based on the risk evaluation of your client and sales volume, or both. Your insurance agent will determine your premiums by looking at how risky it is to insure clients like yours, how many clients you have and what kinds of sales volume they generate.
In some cases, credit insurers use different formulas for calculating premiums depending on whether their clients are large or small businesses; this means that some customers might be able to save money by working with an agent who specialises in small business insurance rather than one who has experience working with larger companies which tend to need more coverage.
CCI covers both short-term debts and long-term debts.
Short-term debt is any amount of money that’s due within a year, long-term debt is due after one year, such as mortgages and car loans. If your customer has short-term or long-term unpaid debts, CCI insurance can help cover them, so you don’t have to worry about the risk of non-payment.
Customer credit insurance is a type of insurance that helps to protect businesses from financial losses when a customer doesn’t pay their invoices. It’s often used by small and medium-sized companies that work with customers on an invoice-based basis, such as a plumber or electrician. It can also be used by large companies that sell products or services to other firms rather than individuals.