Selling Agents' Commission Insurance
Definition - What does Selling Agents' Commission Insurance mean?
Selling agents' commission insurance protects people who make a living from the commissions they earn on sales. This type of insurance reimburses selling agents for losses that occur when a company is unable to fulfill its obligations. This could be because the company's building burned down, got hit by a tornado, or any number of reasons.
Insuranceopedia explains Selling Agents' Commission Insurance
Selling agents' commission insurance comes into play when a selling agent has already made a sale but something happens before the goods are delivered, resulting in losses. For example, a salesperson may sell one million dollars worth of solar panels to a buyer. However, if an earthquake destroys the solar panel manufacturing building, the seller could lose their commission. Selling agents' commission insurance would provide financial reimbursement for this loss.