Credit insurance policy or trade credit insurance policy protects the companies against customer defaults. It covers the sales of the companies to its buyers on credit against the risk of loss due to the insolvency of their customers. Trade credit insurance plays a vital role in the trading cycle of any company by protecting profit, cash flows, sales growth, the balance sheet and a companys customer base. it is also known as commercial credit insurance can be of great help in growth of sales by allowing the secure development of new buyers, new markets , and the credit extended to a buyer.