Credit insurance is an insurance policy that covers the payment risk resulting from the delivery of goods or services. It covers a portfolio of buyers and pays an agreed percentage of an invoice that remains unpaid as a result of insolvency or bankruptcy.

Here is a sample of how credit insurance works:

• Your company is selling products or services to a legal entity in Estonia or abroad and the payment is due in 60 days, for example;

• The buyer does not dispute the invoice or the transaction itself, but either refuses to pay the invoice on due date, becomes insolvent or goes bankrupt;

• The Insurer covers the unpaid invoice of the buyer on terms that have been stipulated in the Insurance Policy.