Accounts Receivable Insurance is a type of coverage that protects businesses from the risk of non-payment by their customers. When a company sells goods or services on credit, it creates accounts receivable, which are amounts owed by customers. If a customer fails to pay due to bankruptcy or other financial issues, this insurance helps mitigate the financial loss. This insurance not only safeguards a company's cash flow but also enhances its ability to secure financing. By having Accounts Receivable Insurance, businesses can demonstrate to lenders that they have a safety net, making it easier to obtain loans or credit lines.