The law “On Bankruptcy” requires compulsory bankruptcy trustee liability insurance. However, we recommend our clients to insure their professional liability not only for this reason. Our policy is a reliable guaranteed protection of your interests if the fulfillment of your professional duties within the bankruptcy proceedings resulted in the damage to bankruptcy case participants.
Our policy covers the following risks:
Mistakes in determining the order of creditor’s claims;
Mistakes in assessing and selling the debtor’s property at an auction (bankruptcy trustees can be made responsible jointly with the valuator and other responsible persons or solely);
Privilege violation when concluding transactions on behalf of the debtor;
Non-performance of duties of ensuring bankruptcy assets, documents and information safety;
Other actions for which the bankruptcy trustee can be deemed responsible.
Insurance policy covers:
Damage caused to the property interests of third parties;
Necessary and reasonable expenses associated with the preliminary establishment of insurance events circumstances and the Insured person’s guilt as well as extrajudicial protection of Insured person’s interests, including expert services expenses;
Court and arbitration proceedings costs associated with insurance events, including lawyer fees.
Insurance terms:
Ingosstrakh Insurance Company represents your interests throughout the claim examination process. Legal defense can be provided either by Ingosstrakh lawyers or independent lawyers, whose services are also paid by Ingosstrakh.
The minimum insurance amount (liability limit) under the bankruptcy trustee liability insurance agreement amounts to 3 million rubles pursuant to Art. 20 of the Law on Bankruptcy.
When appointing a bankruptcy trustee on a bankruptcy case in the event of debtor’s assets exceeding 100 mln. rubles the bankruptcy trustee shall acquire an additional liability insurance for the amount of 30 mln. rubles.
Prices:
1. Option one: two-phase insurance
Concluding an agreement for the term of one year with an insurance amount of 3 million rubles with its subsequent extension for each bankruptcy proceeding. The cost of insurance constitutes 0.15% - 0.2% of the insurance amount per year.
In the event of bankruptcy proceedings declaration an agreement per each company shall be concluded. Based on the information on the debtor company a tariff is set which amounts on average to 0.2% – 1.5% of the insurance amount. In this case the previously effected payment is offset as insurance premium on the particular proceedings insurance.
2. Option two: complete activity insurance
A bankruptcy trustee concludes an insurance agreement for the term of one year, which insures the trustee’s liability during his performance of duties as regards the bankruptcy proceedings during the effective period of the insurance agreement. Submission of information on the debtor company and conclusion of an additional agreement in such a case is necessary only in the event of increase of the insurance amount under the insurance agreement.
For this option the cost is determined based on the bankruptcy trustee’s working experience, qualifications, history of claims and amounts on average to 0.5% -0 1% of the insurance amount.
Our offer to self-regulating bankruptcy trustee organizations:
Assistance in developing risk mitigation programs and insurance standards fro self-regulating organizations;
Insurance consulting;
Beneficial financial conditions of partnership, including preference tariff rates for members of self-regulating organizations;
Convenient interaction conditions, conclusion of insurance agreements with bankruptcy trustees from the RF regions.
Our Contacts
If you have any questions or need additional information, please contact:
Financial and professional risks insurance department
