What type of insurance covers losses due to an inability to collect from customers when accounts receivable records are lost or damaged?

Accounts Receivable Insurance specifically addresses the risk of financial loss resulting from an inability to collect outstanding invoices when accounts receivable records are lost, damaged, or otherwise compromised. This type of insurance is crucial for businesses that rely heavily on credit sales, as it provides coverage for potential losses related to uncollectible accounts. Companies often face significant challenges and financial setbacks if their accounts receivable records are not properly maintained, making this insurance an essential component of risk management.

Property Insurance typically covers physical assets and real property against risks like fire or theft, but it does not directly protect against the financial implications of losing records related to accounts receivable. General Liability Insurance covers third-party claims for bodily injury, property damage, and personal injury but does not cover issues related to accounts receivable management or collection losses. Credit Insurance usually protects sellers against defaults from their buyers, covering situations where customers do not pay their debts, but it is not specifically tailored to handle the scenario of lost or damaged accounts receivable records.

Therefore, Accounts Receivable Insurance is the most appropriate coverage type for this situation, making it the accurate choice for addressing losses related to uncollectible customer payments due to record issues.