Financial Insurance
What Does Financial Insurance Mean?
Financial insurance is a type of insurance policy commonly purchased by businesses. It offers coverage that protects against losses resulting from a contract partner’s failure to meet their obligations. Additionally, it can safeguard against various other types of commercial financial losses. Many companies pair financial insurance with commercial crime insurance, which handles losses from employee theft and outside fraud.
Insuranceopedia Explains Financial Insurance
In addition to mitigating the financial consequences of a contract partner’s failure to meet their obligations, financial insurance also provides protection against various losses, such as sudden and significant declines in stock values or the bankruptcy of a business partner. Most companies carry this coverage alongside other policies rather than on its own, and the types of business insurance guide explains how the different policies fit together.
