Credit Insurance is a type of insurance that protects businesses against the risk of non-payment by their customers. If a customer fails to pay their invoice due to insolvency or other reasons, credit insurance can help cover the loss, ensuring that the business remains financially stable. This insurance is particularly useful for companies that extend credit to their clients, as it allows them to manage their cash flow more effectively. By mitigating the risk of bad debts, credit insurance enables businesses to focus on growth and expansion without the constant worry of unpaid invoices.