Shackleton was at the forefront of pioneering a unique insurance offering to protect Business Rescue Practitioners. These Practitioners have to be multi-skilled (at business, finance, law and many other aspects) and operate in diverse industries, all involving their own set of risks. The Business Rescue Practitioner is exposed to personal liability in his role of trying to save these companies, most of the time with limited resources and funds. Often these risks run into tens of millions and sometimes hundreds of millions in potential damages.
Shackleton understands and appreciates these risks and the unique needs of Business Rescue Practitioners and, in listening to what the market required, was the first to develop a bespoke Professional Indemnity and Fidelity Guarantee insurance product specifically for these Practitioners.
These products are structured so as to give the practitioner peace of mind to get on with what is important – rescuing the company – knowing that they are fully supported in the background by the insurance industry leader in this field.
Our Professional Indemnity Insurance product is designed to protect a Business Rescue Practitioner from their own gross negligence whilst carrying out a turnaround. We understand that in most cases a Business Rescue is unpredictable and it is very difficult to determine how long the appointment will last. Unlike standard PI policies in the market, Shackleton has developed a flexible product that caters for this – which ultimately makes it more affordable.
In addition we appreciate that a claim against a Practitioner may not be immediately apparent, even when the appointment comes to an end. The time period within which we need to be notified of a claim lasts for an extended period after the termination of the Business Rescue, depending on the individual needs of the Practitioner in each case, to give ongoing peace of mind.
Our Fidelity Guarantee cover is another important insurance product, designed to protect the Business Rescue Practitioner if monies are stolen from the business account of the entity being turned around.
A distinction must be drawn here between staff members of the Business Rescue Practitioner and staff members of the company that is being rescued – since the FG policy will only cover thefts carried out by staff of the Practitioner.
The premium for FG cover is determined by a Business Rescue Practitioner electing to take cover on a blanket basis (i.e. all staff member), a named persons basis (i.e only certain staff members) or a named positions basis (i.e. only certain staff positions regardless of the identity of the staff member).
As with the Professional Indemnity Insurance, it may be renewed on an on-going basis for as long as the Practitioner requires it.
It is important to note that the premium can be structured as payable by the company under Business Rescue which, if agreed to, will form part of the turnaround plan. The Business Rescue Practitioner will obtain a quote from us which can then be incorporated in their proposed business turnaround plan. If the plan is accepted the premium is then not paid by the Practitioner but by the company to whom they are offering their services.
We also offer a blanket policy to cover all the work a Business Rescue Practitioner takes on during the year, as opposed to specific individual appointments. The premium for this product is payable by Practitioner himself.