Restructuring Environment – Business Rescue
Genoa Underwriting Managers, on behalf of Safire Insurance Company Limited, offers a bespoke Professional Indemnity Insurance Policy for CIPC registered business rescue practitioners.
Business rescue provides for the efficient rescue and recovery of a financially distressed company by giving the company some breathing space to restructure its financial obligations to creditors to continue operating on a solvent basis.
Per the Companies Act of 2008, business rescue aims to facilitate the rehabilitation of a company that is “financially distressed” by providing for:
- the temporary supervision of the company and management of its affairs, business, and property by a business rescue practitioner,
- a temporary moratorium (“stay”) on the rights of claimants against the company or in respect of property in its possession
- the development and implementation (if approved) of a business rescue plan to rescue the company by restructuring its business, property, debt, affairs, other liabilities, and equity.
WHY CHOOSE GENOA?
As Genoas footprint in the liability space continues to grow from strength to strength, we thought we would share with you why more and more brokers are choosing to work with us as their partner of choice:
Our Underwriters are committed to providing our clients with superior turnaround times when issuing quotations and schedules of cover
Our underwriters are experts in their respective fields and are able to offer our clients technical advice which helps empower them to secure an account
We have strong working relationships with the top re-insurers in the country including Munich Re and Swiss Re who support all of our Professional Indemnity products
Through strategic reinsurance partnerships we are able to offer competitive market premiums
Our policies include a number of meaningful extensions that offer true value to our thousands of Insured clients
Our Insured Practitioners are represented by the top law firms in the country, including firms like Clyde & Co, Garlicke & Bousfield, Mac Robert Attorneys, Norton Rose Fulbright and Webber Wentzel
OUR COVER CAN INCLUDE:
Professional Indemnity
Due to the fact that the Companies Act regulates the duties of the Business Rescue Practitioner, the number of claims which a creditor may bring are limited.
With the above said, claims may still arise is in instances where:
- the BRP trades the company recklessly by terminating or entering into contracts which the creditors feel place their claims against the company in a worse off position.
By having professional indemnity insurance, the BRP is covered for the cost of compensating a third party for their loss or damage resulting from their grossly negligent actions.
Fidelity Guarantee Cover
The Insured under this section of cover is the Business Rescue Entity and indemnity is offered for loss of money and /or property belonging to Business Rescue Entity stolen by the Business Rescue Practitioner or nominated sub-contractors.
The Policy is designed with the complexities and unpredictability of the Business Rescue environment in mind and is structured in a unique way. This means that unlike traditional insurance policies, the premium for our policies are put through as a disbursement and included in the business rescue plan which means the BR Entity pays the premium on behalf of the BRP.
Need this cover?
Our team of Broker Consultants are ready to answer any questions you may have