What subcategory of business floaters reimburses insured for amounts owed from uncollectible customer debts?

The accounts receivable floater is specifically designed to reimburse businesses for amounts owed to them from customers whose debts become uncollectible. This type of insurance is crucial for companies that extend credit to customers because it protects their cash flow by providing funds when customers default on payments.

The purpose of the accounts receivable floater is to cover losses incurred due to the inability to collect outstanding invoices, which can significantly impact the financial stability of a business. This policy enhances the management of accounts receivable and mitigates the financial risk associated with customer defaults.

In contrast, a property floater typically covers physical property loss or damage, while a general liability floater pertains to liability claims arising from business operations. The business interruption floater, on the other hand, covers lost income due to a suspension of business operations rather than uncollectible debts. Each of these other types of floaters serves a different purpose and does not address the specific need for protection against uncollectible customer debts as effectively as the accounts receivable floater does.