The following are some of the more common Questions and Answers relating to Insolvency Insurance which we get asked from time to time.
If you need more information or arrange cover be sure to either register on our website or contact us.
  Q. Why do Insolvency Practitioners have specialist insurance requirements? |
A.
Insolvency Practitioners need to be able to arrange immediate insurance cover based on very limited information from the time of their appointment. This cover has to be available for a broad range of risks from unoccupied property to trading risks (hotels, motor traders etc)
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| Q.Why arrange alternative insurance cover – surely the insolvent firm has insurance cover already in place? |
A.
Many insolvency firms have wither left their insurance cover cancel due to premium default or have a policy condition that all insurance cover automatically ceases in the event of the appointment of an insolvency practitioner. Insolvency Practitioners cannot take the risk of their being no insurance cover in place & must arrange automatic cover to avoid any possible gap in cover. However their can be merit in maintaining an existing cover in certain circumstances (i.e. specialist covers (i.e. medical risks) or where a substantial not refundable premium has been recently paid to insurers.
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| Q.What is an on site survey & that are the benefits to an insolvency practitioner? |
A.
By providing on onsite survey you are assured that an insurance professional have reviewed the potential risks & provided you with their recommendations regarding your insurance requirements. If you simply complete a questionnaire for an insurer you are diagnosing your insurance requirements & are therefore responsible for any errors or omissions
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| Q. Do I always have to arrange a 3,6 or 12 month policy? |
A.
Most risks require a 3 – 12 month terms however sometimes you may be dealing with quick turnaround liquidations that simple involve the disposal of stock &/or equipment we can arrange cover using our flexicover option which allows cover to be arranged for a matter or weeks & insurance premium to be paid monthly in arrears.
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| Q. What are the benefits of an online system?
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A.
With our online system you have the ability to arrange insurance cover (Standard; residential & flexicover) 24/7 without any intervention from ourselves. Our system also provides you with immediate conformation of insurance cover & full access to policy wordings. In addition you can download applications forms for our after the event & structural guarantee products.
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| Q. What is Structural Guarantee & why would an insolvency Practitioner wish to avail of it? |
A.
We can provide structural guarantees (or latent defect covers) in respect of partially & fully completed commercial & residential buildings (incl apartment blocks). In many circumstances the existing structural guarantee may have failed due to the insolvency & we can arrange a structural guarantee solution which will not have any recourse to the receiver/insolvency practitioner. The benefit to the insolvency practitioner in availing of structural guarantee is that it increases the sales value of a property & also underwrites any potential liability for future structural defects. |
| Q.How can After The Event Legal Expenses insurance cover help insolvency practitioners? |
A
Many insolvency practitioners are unable to seek recovery from third parties for debt recovery, contractual disputes, professional negligence/errors & omissions as third parties will engage a defence of security for costs should the insolvency practitioner pursue legal action. However insolvency practitioners can now use an After The Event insurance cover to provide proof that in the event of a third party successfully defending an action that their costs will be covered by an After The Event Legal Expense cover. This clearly allows an insolvency practitioner pursue recovery in cases where this previously would have been impossible. |
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