Trade credit insurance – also sometimes called accounts receivable insurance – has one simple aim: to support your business when a customer fails to pay a trade debt.
That situation may occur when a customer becomes insolvent or does not pay within the contracted terms (a protracted default). The insurance indemnifies a proportion (up to 95%) of the debt owed to you. Phrasing a little odd. May want to consider: The insurance indemnifies up to 95% of the debt owed to you, provided you have traded within the limit we give you for that customer.