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Insurance for Debt Collection Agencies

Collection agencies are operations retained by clients to collect accounts in default by the client’s customers. Collection agencies have several unique and severe exposures. One is that of personal injury such as libel and slander. The risk must make accurate checks of the situations for which it has been asked to collect, and to make sure that its clients have proper grounds to proceed. Collection agencies must be very careful that their own acts, such as the wording of post, harassing phone calls and trespassing when entering the premises of others are legal.

At Business Insurance Service, we understand not just the insurance industry, but the commercial sector too. Our brokers have years of experience and expertise in finding professionals from across all disciplines the right kind of Liability and Professional Indemnity insurance cover for professionals, giving both sole traders, SMEs, and large international agencies the protection they need.

 

What Insurance do Debt Collection Agencies need?

Minimum recommended cover can usually be arranged on a Commercial Combined policy to include Buildings, Computer Equipment & General Contents, Increased Expenditure, Employee Dishonesty, Public Liability, Employers’ Liability

Other covers to consider are Cyber Liability, Employment Practices Liability, Commercial Vehicle, Employee Benefits, Directors and Officers Liability, Excess of Loss/Difference in Cover.

Property insurance

Property exposure should be limited to office type equipment and paperwork. All paper should be stored in fireproof file cabinets and no smoking should be permitted. If collections of goods are made, there may be temporary storage on premises. If so, all must be separated and categorised for the client. Necessary protection must be taken for the type of item collected.

Property liability

Premises liability exposure is very limited. However, there may be extensive off-site exposure if the applicant handles the repossession.

Crime Insurance

Crime exposure is from Employee Dishonesty. Records must be kept and receivables regularly accounted for. Auditing is very important.

Employers’ Liability Insurance

Employers’ liability exposure is another area of high concern if collection agents visit the premises of their clients’ customers or if any type of repossession is done. All workstations must be ergonomically designed to prevent repetitive motion injuries.

Professional Indemnity Insurance (PI)

Professional liability exposure is high because of the confidentiality of client relationships and the various legal aspects of reclaiming clients’ property. Procedure manuals, letters sent, and phone conversations must all be legal and regularly reviewed to ensure that they comply with regulations.

Commercial Vehicle

Motor liability exposure is low if there is no repossession but high if there is. Drivers must have valid licences and should be trained in the transport of a variety of goods.

What other risks does a Debt Collection Agency face?

Other exposure is Deeds and Documents, Book Debts, and Computer as well as any records involving customers. Duplicates of all records and papers are important. Duplicates should be kept off premises for restoration purposes.

Why not discover more about Business Insurance Service? Or simply get in touch with our services today.

How can Business Insurance Service help Debt Collection Agencies?

Whether you’re a sole trader or a small to large company, your insurance portfolio has to be up to date and provide you and your business with the right level of protection. Rather than trying to find liability or professional indemnity insurance by hunting through countless websites, let us or our website do it for you.

We’re members of the British Insurance Brokers Association (BIBA) and work with some of the largest and best-known insurance providers in the UK, including Lloyds of London for larger, more complex and high-risk customers. We’re fully regulated and committed to delivering a premium quality, trustworthy and reliable service to all our customers, regardless of size.

As preferred brokers working with some of the largest insurance providers in the UK, we have immediate access to a huge range of policies for various businesses, including vets and surgeries. We provide our customers with a bespoke or package service, creating insurance portfolios that are specifically tailored to your individual needs, and your budget.

A fully accredited service delivered by professional brokers

To find out more about insurance for Debt Collection Agencies call us on 01273 789 979

Email us at hello@businessinsuranceservice.co.uk

Use our Get In Touch form to request a call-back.

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    We’re members of the British Insurance Brokers Association and work with some of the largest and best-known insurance providers in the UK, including Lloyds of London for larger, more complex and high-risk customers. We’re fully regulated and committed to delivering a premium quality, trustworthy and reliable service to all our customers, regardless of size.