Credit insurance is a type of coverage that protects businesses against the risk of non-payment by customers. This insurance can have a few different names, including trade credit insurance, debtor insurance, and bad debt insurance. Other common synonyms include receivables insurance and accounts receivable insurance. Essentially, these terms all refer to the same type of protection for businesses that extend credit to customers. Different insurers may use different terminology, but the basic idea is always the same. By purchasing credit insurance, businesses can minimize the financial fallout if a customer defaults on a payment or goes bankrupt.