Professional Indemnity for Business Rescue Practitioners
Genoa Underwriting Managers, on behalf of Lombard Insurance Company Limited, offers professional indemnity for business rescue practitioners who are registered with the CIPC.
Professional indemnity for business rescue practitioners is an essential safeguard in a highly regulated and high-stakes field. Business rescue provides for the efficient rescue and recovery of a financially distressed company, giving it breathing space to restructure its financial obligations to creditors and 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 Genoa's 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 that a creditor may bring is limited.
With the above said, claims may still arise 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 the 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 uniquely. This means that, unlike traditional insurance policies, the premiums 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.
FAQs About Professional Indemnity for Business Rescue Practitioners
Is Professional Indemnity Insurance Mandatory For Business Rescue Practitioners?
It is not always legally required, but it is widely expected due to the level of responsibility involved in managing distressed companies.
What Does Professional Indemnity For Business Rescue Practitioners Cover?
It covers claims arising from errors, omissions, or decisions made during the business rescue process, including legal defence costs and settlements.
How Is Professional Indemnity Cover For Business Rescue Practitioners Structured?
The policy is structured around the rescue process, with premiums often included as a disbursement within the approved business rescue plan.
Can A Business Rescue Practitioner Be Held Personally Liable For Claims?
Yes, practitioners may face personal liability if their actions result in financial loss or disputes with creditors or stakeholders.
Need this cover?
Our team of Broker Consultants is ready to assist you with any questions about professional indemnity for business rescue practitioners.