Professional Indemnity Insurance for Insolvency Practitioners
Shackleton Risk offers Professional Indemnity Insurance to Insolvency Practitioners who are on the Master’s panel. This policy is not Top-up cover but comprehensive insurance cover for selected risks. Coverage is available for the following risks : Professional Indemnity, Fidelity Guarantee and Misappropriation of Trust Funds. An excess for each risk class applies.
These are discussed below:
Professional indemnity insurance is indemnity in respect of the insolvency practitioner’s legal liability to pay compensation to any third party (including claimant's costs, fees and expenses) for any negligent act, error or omission which arises in the performance of his Professional Duties as liquidator or trustee of an insolvent estate.
Shackleton Risk offers several extensions to the PI section of the policy and these include:
- Claims preparation costs
- Defence Costs to appear before a statutory body
- Liability following employee dishonesty
- Loss of Documents
Fidelity Guarantee Insurance for Insolvency Practitioners
Fidelity Guarantee Insurance indemnifies the Insured for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment subject to terms and conditions contained in the policy.
Misappropriation of Trust Fund, or MOTF as it’s commonly called, indemnifies a firm of practitioners in the event that a third party pursues a claim against the firm for theft committed by a practitioner or any employee of the firm in respect of an estate where monies are held in trust in a section 70 or section 394 account.
This cover is available in three different variations
- Blanket Basis – this basis allows the Insured to cover all staff members within the practice
- Named Positions Basis – this basis allows the Insured to insure specific positions within the practice eg bookkeeping, finance department
- Named Persons Basis - this basis allows the Insured to insure specific employees within the practice
For more information or to set up a consultation, please contact your local broker: