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.

Connect with us

Insuranceopedia on Linkedin
Insuranceopedia on Linkedin
Tweat cdn.insuranceopedia.com
"Insuranceopedia" on Twitter


'@insuranceopedia'
Sign up for Insuranceopedia's Free Newsletter!