Credit insurance refers to several kinds of
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
relating to financial
credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...
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Trade credit insurance, purchased by businesses to insure payment of credit ''extended by'' the business
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Payment protection insurance
Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabl ...
, purchased by consumers to insure payment of credit ''extended to'' the consumer
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Credit derivative
In finance, a credit derivative refers to any one of "various instruments and techniques designed to separate and then transfer the '' credit risk''"The Economist ''Passing on the risks'' 2 November 1996 or the risk of an event of default of a co ...
, financial instrument or technique designed to separate and then transfer the credit risk of an underlying loan
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Types of insurance
Credit