Cover against a buyer failing to pay for goods or services delivered on open account, whether through insolvency or protracted default. It is written as a continuing policy over a book of buyers rather than transaction by transaction. The policy sets a credit limit for each buyer, which the insurer can reduce or withdraw as its view of that buyer changes; it requires overdue accounts to be notified within set periods and collection steps to be taken; and it indemnifies an agreed proportion of the loss, not the whole of it. Claims are more often refused for missing these procedural conditions — an unreported overdue, shipments made above the limit — than because the loss fell outside the risks covered.
Why this entry carries no source list. This is a product category or an official document type rather than a defined term. What it covers or attests is set by the policy wording, the facility terms, or the requirements of the country demanding it — and those differ by insurer, by bank and by jurisdiction. Naming one provider’s brochure as the authority would dress a single firm’s practice as a general rule. Read the wording you are actually being offered.