The vital role of Insolvency Services to Canadian businesses…
As an Insolvency Service, you are meeting with your clients at a very difficult time – the dissolution of their business due to debt. As a professional, you are trusted to administer bankruptcies and ensure your clients’ rights are protected. You also must balance the rights of the creditors and aim to pay your clients debts wherever possible. This balancing act is difficult, but you provide an important service to society. And while your clients are experiencing hardship, you can help by making the process as smooth and painless as possible.
But you also must protect yourself as a bankruptcy trustee against any claims that could result from this process against your own business.
The right insurance coverage for your Insolvency Service
Your job is a tough one, you have to settle your client’s debts by using what assets they still have available. Finding the right solution for each client’s situation can be difficult, and often involves liquidation and a reorganization of your client’s assets. Your professional liability is increased the more complicated the case, and your insurance coverage has to protect you in the process.
Consider the following scenarios that would require you to have insurance coverage for your Insolvency Service:
While going through bankruptcy proceedings, you discover your client has made a payment to one creditor and exhausted his funds. You still need to be paid for your services and other creditors are also demanding payment.
Your cloud file storage system is hacked, resulting in confidential client information being obtained.
Your office sustains damage after the business operating above it floods.
To cover your business in these and other scenarios, the following coverages are key:
- Cyber Liability Insurance – your business information is stored online, and you are responsible for confidential client information. This coverage protects you in the event of a data breach or crash.
- General Liability – this is an essential coverage for most small businesses to protect against any personal injury or property damage that occurs as a result of your business activities or advertising.
- Business Consultants Errors and Omissions Insurance – this coverage is essential for Insolvency trustees as you are providing advice to clients for compensation. If your advice should result in further losses to your client, they could hold you liable.
- Property Insurance – to protect your physical and intangible assets from unexpected and unforeseen perils, property insurance can give you peace of mind.
- Umbrella Liability Insurance – if your company becomes the target for a large settlement claim, this coverage kicks in to fill any gaps or when other liability coverage is exhausted.
In order to be able to find the right solutions for your clients, your Insolvency Service business must also be protected from potential threats. Contact an ALIGNED business insurance advocate today to discuss your individual needs.
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