Recently, one of our clients had a potential claim with a covered customer in Mexico.  The customer was not insolvent, but they were not making any payment on the $135,000 that they owed.  Our insured decided to file a claim on their policy immediately, which allowed the underwriter (Atradius) to commence collection action against the debtor.  Compared to where they would be if they did not have credit insurance, our insured was in a good cash flow position regardless of the outcome of the claim/collection effort.  If they did not have credit insurance, the company would be looking at a protracted, frustrating,  and expensive collection process in Mexico, tying up management time and effort in the process.  With credit insurance, however, the insured is in a win-win position.   If the customer did not pay, Atradius would settle the claim for $121,500 ($135,000 less 10% coinsurance).  If the customer did pay as a result of Atradius’ collection efforts, the insured would initially receive $112,050 ($135,000 less the $22,950 collection fee).  However, since Atradius covers collection fees as part of their policy, the insured would be entitled to submit a claim for the fees, receiving an additional $20,655 ($22,950 less 10% coinsurance).  Either way, the insured receives a substantial recovery on their potential bad debt, and in a very timely manner,  while avoiding an unproductive investment of management time and effort chasing down this debt.  In a claim situation, especially in countries where the courts are very slow, credit insurance has excellent cash flow value for companies.