By Charlotte GAUCHON
15 April 2025
These two insurance mechanisms protect commercial transactions, but they operate differently. Confusing them can lead to costly strategic errors for businesses. Credit insurance: main features Credit insurance protects the creditor-seller against the risk of non-payment. Creditors take out this insurance to protect themselves against the insolvency of their customers. According to V. Nicolas, a professor at the University of Toulon: «Credit insurance can be defined as an insurance system that enables creditors, in return for the payment of a premium, to cover themselves against non-payment of debts owed by persons identified in advance and in default of payment». In a ruling dated 17 January 1950, the French Supreme Court (Cour de Cassation) confirmed the legal classification of this contract as insurance. Credit insurance has two distinct components: Internal credit insurance (domestic market) Export credit insurance (international trade) The Insurance Code classifies credit insurance in class 14 of article R.321-1....
EN 
FR