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Financial loss insurance protects individuals and companies against various financial risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time. Insurance might also cover the failure of a creditor to pay money it owes to the insured. This type of insurance is frequently referred to as business interruption insurance. Fidelity bonds and surety bonds are included in this category, although these products provide a benefit to a third party (the obligee ) in the event the insured party (usually referred to as the obligor ) fails to perform its obligations under a contract with the obligee.

Ask the dealer to supply you with a sample contract to read. This will allow you to see exactly what is and is not covered. By reviewing this contract you should also be able to determine exactly who the insurer is so that you will know who to contact in case of a claim.