Skip to main content
Marsh logo

Insolvency Financial Interest Insurance Scheme

Comprehensive insurance solution designed for insolvency practitioners. Manage and maximise the value of clients’ assets during insolvency proceedings
Contact us

Financial Interest Insurance Scheme

At Marsh, we understand the unique challenges faced by insolvency practitioners. Our Financial Interest Insurance Scheme provides comprehensive coverage and tailored solutions to help you protect and maximise the value of your clients' assets during insolvency proceedings.

An important duty of an insolvency practitioner is to ensure that assets are adequately protected, which includes ensuring the appropriate insurance is in place to meet their obligations.

The most common action is to note your interest on an existing insurance policy, or to affect an insurance policy for the market or reinstatement value of the asset. Both practices create risk exposures for the appointee and the additional costs could be deemed excessive.

Marsh’s Financial Interest Insurance Scheme is a comprehensive solution designed specifically for insolvency practitioners to manage and maximise the value of their clients’ assets during insolvency proceedings. It enables you to insure the equity vested in a trustee in bankruptcy, trustee, liquidator, or a receiver or trustee appointed under the proceeds of crime act, drug trafficking act, criminal justice act, or a fixed charge holder.

Full Financial Interest Cover:

If no evidence of existing insurance policies are attained, cover must be maintained on a full financial cover basis until such time evidence is attained. Property owners liability cover is included.

Contingent Financial Interest Cover:

If evidence of existing insurance is attained, cover can be converted to contingent cover from receipt of confirmation. Evidence should be retained on the appointment file. Cover does not have to be verified at expiry. However, should you be made aware that the existing cover is no longer valid, cover must be converted to full financial cover from the date of receipt of said notification. Property owners liability cover is included.

Property Owners Liability Cover:

  • Property owners liability cover to indemnify the appointee in the event of a third-party claim. This is available for any realisable asset where property owners liability cover only is required and the realisable asset is in the form of land or buildings where no financial interest cover is required.
  • Applicable for land only asset or a property with financial interest less than £5,000 of which you have possession of.
  • For land, and assets whereby you have possession thus third-party liabilities.
  • Included within full financial and contingent covers.
  • Level of indemnity £5 million.

Levels of Cover:

  • The financial interest is defined by the total combined equity of all assets.
  • The market value of the asset(s) is not required for calculation or declaration purposes.
  • The financial interest bands have pre-defined premium ratings and basis of cover.
  • Financial interest:
    • Combined equity up to £4 million any one appointment.
    • Equity of greater value to be referred for advice and guidance.

Financial interest insurance scheme

Contact us today to learn more about how we can support you and your clients.

Download PDF

Other products

Analysing financial data with a pen

Product,Expertise

Bonds for Insolvency Practitioners

09/09/2024
Man with umbrella

Product,Expertise

Insolvency Insurance Facility

09/09/2024
Estate agent 'For Sale' sign

Product,Expertise

Residential Property Facility

09/09/2024

Related insights

Modern buildings city in aerial view

Article

Financial and professional lines claims continue to rise across Europe

07/11/2024
Hand of female doctor is filling a prescription or signing a medical report or medical certificate or Medical examination form paperwork on office or clinic or hospital

Newsletter

Mental health and wellbeing risks in UK financial and professional service

07/10/2024
Seamless skyscraper facade with blue tinted windows and blinds at night. Modern abstract office building background texture with glowing lights against dark black exterior walls. 3D rendering.

Article

Understanding professional indemnity insurance for accountants in Cyprus

30/09/2024
Chatbot chat with AI Artificial Intelligence, man using technology smart robot

Article

Emerging trends in IP Litigation

25/09/2024
View more