Business Rescue Defined
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.
Genoa Underwriting Managers (on behalf of Safire Insurance Company Limited) offers a bespoke Professional Indemnity Policy for CIPC registered business rescue practitioners.
Professional Indemnity is underwritten on a claims-made basis and is designed to indemnify the BRP against loss arising as a result of gross negligence as specified in terms of Section 140(3)(c)(ii) of the Companies Act.
Cover is issued on an individual matter basis with quarterly, half yearly or annual payment options on offer. In practice this means that the BRP will bill the company in rescue as part of a disbursement for his/her PI cover.
Where more than one BRP has been appointed in relation to the BREntity, the policy can be endorsed to cover both Practitioners.
Individuals subcontracted in to assist the BRP with administrative duties can also be included in this cover but they must be named on the policy schedule. An Extended Reporting Period (ERP) of 12, 24 or 36 months may be selected by the Practitioner. The ERP allows the BRP to notify Insurers of a claim after the business rescue has been terminated for the reason set out in the policy wording.
We give each client the promise of quick and efficient resolutions of valid claims, and the rigorous defense against Vexatious litigants.
FIDELITY GUARANTEE COVER
Fidelity Guarantee Cover, if selected, covers the BR Entity against direct financial loss which is sustained as a result of fraud or dishonesty of the business rescue practitioner or subcontractors, named in the policy schedule.
The loss under the policy must have occurred during the Policy period.
Like with the PI policy, the premium for the Fidelity Guarantee is paid for by the BR Entity.
The above is meant to be a summary of the cover and at all times the terms and conditions contained in the Policy Wording and Schedule of Cover will take preference should a conflict arise.
Terms and Conditions apply.