Unfortunately, and sometimes despite best efforts, it isn’t possible to turn around a company’s path and the only way for debtors and investors to recover even a portion of their investment is through the liquidation process. As a Liquidator Business, you have work with insolvent businesses to sell off inventory and other assets in order to satisfy creditors. This is a difficult role to play, and not without its risks to you as a business owner.
What kind of insurance do Liquidator Businesses need?
Yes, yes they do! Indeed, as a Liquidator Business owner there are risks that you must guard against. As you work in this realm, you may be working with companies who are voluntarily complying with the process and possibly some that are not. You may be brought in simply to handle one aspect of the process, like selling off inventory to create cash flow. No matter what your specific role in each insolvency procedure, you have to make sure you are protected against any claims that could be made against you.
You have the expertise to come in, take over and start selling and apportioning business assets. But what sort of protection do you need to do this work?
Types of insurance for a Liquidator Business
Liquidator Business General Liability insurance will cover your business against claims made against it as well as costs associated with claims made for property damage or bodily injury as a result of your business’ activities or advertising. This coverage is necessary for any small business and guards as a minimum and provides for any legal fees and often settlement payments.
You are settling outstanding debts and contracts for the business being liquidated, and often wrapping up business activities. You are often tasked with taking over the business being liquidated, so there is a lot of information to process and consider. This can be a complicated process and you should protect yourself with Consultant’s Errors and Omissions coverage in the event that you somehow overlook an important detail or otherwise don’t perform up to your professional standard.
The information you work with is sensitive and you could be liable for any data breaches or losses. That makes Cyber Liability Insurance an essential coverage for a Liquidator Business to protect online assets and sensitive information.
Umbrella Insurance coverage can assist as a means of guarding against your policy limits in the event of a large claim or judgment against your company. If the limits of your other policies are reached, umbrella coverage is there to make up the difference. Specifically:
…umbrella liability insurance is designed to protect your assets by kicking in when your primary commercial general liability coverage is exhausted. Adding umbrella liability insurance or excess liability insurance layers is like building a tower with blocks. Each block represents a layer of protection that is triggered if the limit in the underlying policy is used up.
Keep reading: How Umbrella Liability Insurance fills the gap
As the owner of a Liquidation Business, you have the unique role of taking over a business that is insolvent and making the most of a difficult situation. Contact one of our ALIGNED brokers to customize an insurance package that matches your business’ needs and allows you to operate with peace of mind.
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