Answer:
A credit insurance policy covers an organization against losses that might arise as a result of debtors failing to pay their debts. Credit insurance is designed to protect a business against the risk of nonpayment by its customers or clients. It can cover a wide range of risks, including commercial and political risks, and can be customized to meet the specific needs of an organization. Credit insurance can be an important tool for businesses that rely on credit to fund their operations or that have a large number of customer accounts. It can help to mitigate the financial impact of unpaid debts and reduce the risk of financial losses for the business.