Does business insurance or trade credit insurance cover unpaid invoices?
General business insurance usually doesn’t cover unpaid invoices. Trade credit insurance is a separate policy that can reimburse covered receivables when a customer becomes insolvent or defaults, subject to limits, approved customers and claim deadlines. It must be in place before the loss, and insurers often require timely collection efforts.
What does trade credit insurance usually require?
Policies typically list insured customers and credit limits, require you to report overdue accounts within set periods, and may require placement with a collector. Read your policy’s claims section.
Is it worth it for a small business?
It depends on how concentrated your receivables are. Ask a licensed broker for quotes and compare against your past bad debts.
Related answers
Invoice factoring vs collection agency · Business bad debt deduction
Getting ready to place an account? Use the free collection toolkit or browse all before placing answers.
Get matched: agency, attorney, AI or certified firm
Tell us about the unpaid invoice and choose a preferred option, or let us recommend one: AI/automated collection, a collection attorney, a collection agency (local or national), or an IACC member, CLLA-certified or ACA International member agency. Matching is free, and nothing is placed until you approve a partner’s written terms.
Prefer email? Write to [email protected].
Frequently asked questions
Can I buy coverage for an invoice that is already late?
Generally no; coverage applies to receivables insured before the problem arose.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: IACC, “Commercial Collection Guidelines for Credit Grantors” (2018) (accessed Oct 18, 2026).
Owed money by another business?
Tell us about the unpaid invoice and we’ll match you with an experienced collection partner suited to its size, age and location. Matching is free.
Get matched with a collection partner