Informal Restructuring Cover in the Restructuring Environment
Informal restructuring protects restructuring advisory firms against legal liability arising from advisory mandates conducted outside formal insolvency proceedings. Genoa Underwriting Managers, on behalf of Lombard Insurance Company Limited, offers a bespoke Professional Indemnity Insurance Policy on a very selective basis for corporate restructuring advisory services provided by an Advisory Firm.
Professional Indemnity Insurance for Corporate Restructuring Advisory Services
Companies often consider informal restructuring as an alternative to business rescue. An informal restructuring requires a company to work with some or all of its creditors outside of a formal process in order to come to a negotiated solution where the company can return to financial health. Informal restructurings have been said to have a higher success rate than business rescue, primarily because the often negative connotations associated with business rescue are avoided in whole or in part. Due to the informal nature of doing business under an informal restructuring process, the level of transparency and accountability creates trust in the process. Additionally, as informal restructurings are usually confidential (no media or public court system), the company’s reputation and market value, relationships with employees and suppliers are preserved.
Who This Cover Is Intended For
This cover is designed for restructuring advisory firms, financial consultants, insolvency practitioners, and corporate advisors involved in informal restructuring engagements. These professionals operate within complex restructuring processes that require creditor negotiations, financial recovery planning, and strategic restructuring advisory services provided to companies working towards financial stability in a confidential, informal restructuring environment.
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
This policy offers professional indemnity cover for the advisory firm and any named consultants in respect of their legal liability to pay compensation as a result of actual or alleged negligent act(s), error(s), or omission(s) in the exercise of their professional advisory services.
What You Need to Know About Informal Restructuring
What is informal restructuring in a corporate context?
Informal restructuring is a negotiated financial recovery process where a company works directly with creditors outside formal court proceedings to restore financial stability.
How does informal restructuring differ from business rescue?
Informal restructuring is typically confidential and negotiated outside formal legal processes, while business rescue follows a regulated legal framework with court oversight and public proceedings.
Do advisory firms need professional indemnity for restructuring services?
Yes. Advisory firms involved in restructuring processes face legal liability risks related to professional advice, creditor negotiations, and financial recovery strategies, making professional indemnity cover highly relevant.
Need this cover?
Our team of Broker Consultants is ready to answer any questions you may have