The need of business rescue insurance for practitioners

The need of business rescue insurance for practitioners

Business rescue practitioner in South Africa has to go through numerous risks when trying to rescue businesses. As a result, the possibility of personal liability may get attached to a practitioner at any point in time.

Thus is important for a business rescue practitioner to ensure that they are properly covered by a business rescue insurance protecting them from the event of claims rising against their name.

Business rescue insurance: A real blessing!

Most often when a practitioner carries out a business rescue operation, they may be alleged on the grounds of negligence. Records have shown that business account thefts are a definite reality. It is in such desperate times that business rescue insurance comes as a real blessing.

Here are two insurance options which some of the best companies’ in South Africa provide practitioners carrying out business rescue operations:

PI or professional indemnity insurance

Professional Indemnity insurance helps compensate for the claims made by 3rd party upon practitioners because of their negligence. Even the most experienced professionals can make one or two errors. Based on those errors, charges such as giving away inadequate advice, designs or services to clients can be insulting as well as demoralizing.

It can increase the complications of practitioners and make them overly stressed out. This is more so when they have to bear most of the expense and they are not sure of how long they would be appointed.

Professional indemnity insurance covers all costs and resources which the practitioner needs for the business rescue operation. Plus PI insurance coverage also covers up the expenses practitioners have to pay to their clients for rectification of their mistake.

Some of the best companies in South Africa offering this insurance coverage will cover practitioners against a wide range of allegations.

Other than negligence of practitioners, the best business rescue insurance companies will compensate for loss of data or important documents
They will also compensate for misplacement of goods of money
Unintentional breach of confidential documents or copyright, as well as libel and defamation, will also be covered in the PI insurance offered by top rated companies.
Fidelity Guarantee Cover (FG)

Another product of assistance which business rescue practitioner will get from top rated companies is Fidelity Guarantee Cover (FG).

In the event of money stolen from the business account of the company rescued, this insurance acts as a shield protecting business rescue practitioner from claims of theft, fraud and dishonesty.

Companies are always exposed to financial losses mainly for crimes of employees. A clear distinction is drawn between the business rescue practitioner members and members of the company rescued.

Companies giving out FG business rescue insurance coverage compensates for the money which is stolen from the account of the rescued company.

The benefit of such business rescue insurance coverage is that it safeguards the reputation of practitioners. This is more so as the practitioners of this field are very few.

It is always important to go for a reputed SA company who has been functioning in this venture for many years. Also when choosing a reputed firm, it is a must to check if they are legally certified to provide such services.

Henceforth, if you are a practitioner wanting some coverage from risks of business rescue always choose the best companies in the realm! Check their website and better yet give their officials a call and discuss it out.

Paul Smith is the author of this article on business rescue practitioner.
Find more information, about business rescue here