The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Almost all claims against debt collection agencies concern pure financial loss: nothing is damaged and nobody is injured, but somebody is out of pocket. A reminder for a debt that has already been paid, an increase with costs that were not allowed, a registration that was not justified. That is precisely the type of loss that ordinary public and employers' liability insurance excludes; professional indemnity cover is needed for it.
Your second risk lies in what you are not allowed to do. A debt collection agency has no official powers: no attachment, no eviction, no writ. If a letter gives the impression that those steps are already under way, that is unlawful towards the recipient within the meaning of Article 6:162 of the Dutch Civil Code, even if the debt itself is correct. The difference from a court bailiff is fundamental here.
What stays outside every policy: administrative fines and penalty payments arising from the registration requirements, deliberate wrongdoing under Article 7:952 of the Dutch Civil Code, and your client's credit risk. The fact that the debtor cannot pay is not an insurable loss.
What does liability cover for debt collection agencies?
The structure of the cover in three parts, with an overview per situation below.
The basics
Liability
AVB for property damage and injury, BAV for professional errors.
Damage to third parties
Employers' liability
Care, custody and control as an extension
Your business
Assets and continuity
Business contents, goods and lost turnover during downtime.
Business contents at replacement value as new
Goods at cost price
Business interruption or additional costs
If you employ people
Staff
Sickness absence, accidents and the traffic risk.
Continued pay for 104 weeks
Group personal accident
WEGAS for traffic risks
What is covered
Situation
AVB
BAV
Cyber
Injury to a visitor or customer
Yes
No
No
Damage to a client's property
Sometimes
No
No
Financial loss caused by an advisory or calculation error
No
Yes
No
Downtime after a ransomware attack
No
No
Yes
Data breach involving personal data
No
Sometimes
Yes
Damage to property in your care
No
No
No
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Check the debt before you write
The most common claim is a reminder sent to someone who had already paid, or to a namesake. That produces collection costs, wasted time and sometimes a registration that affects the recipient when applying for credit. Ask your client for an up-to-date balance and for supporting evidence of the debt, and record the date on which you requested it. If in doubt about the person: check first, then send.
Do not suggest powers you do not have
You may send reminders, telephone and propose a payment arrangement. You may not attach property, give notice of eviction or issue a writ. That is reserved for the court bailiff. Letters that threaten in bailiff's language when there is no enforceable judgment are unlawful under Article 6:162 of the Dutch Civil Code, even if the debt is correct. Have your standard letters reviewed periodically; things go wrong more often in the template than in the file.
Client account funds are a separate risk
If you collect on behalf of clients, money that is not yours passes through your hands. If that money sits too long because of a bookkeeping error, that is a professional error. If it disappears through the actions of an employee, it is no longer an error but fraud, and Article 7:952 of the Dutch Civil Code excludes loss caused deliberately. For the latter there is a separate fidelity or money policy. In any event keep client funds separate in your accounts.
Fines and regulatory costs are for your own account
The registration requirements for debt collection services are enforced under administrative law. A fine or penalty payment arising from that is a punishment, and punishments are not insurable. The same applies to a fine from the Autoriteit Persoonsgegevens (the Dutch data protection authority) after a data breach. What can be arranged is the assistance: the cost of defending the case often falls under the policy or under legal expenses insurance. Ask how your policy deals with that.
What does your premium depend on?
Number of cases per year. The number of people written to determines how often a mistake can occur, more so than your turnover.
Consumer or business collection. Stricter requirements apply to consumers as regards costs, time limits and information. That increases the risk.
Handling client money. If you collect and pass money on yourself, the set-up of your accounts counts in the underwriting.
Home visits. If you visit debtors at home, property damage and injury are added to the risk of financial loss.
Number of employees. You are liable for the mistakes of your staff under Article 6:170 of the Dutch Civil Code. The number of staff counts.
Sum insured, excess and retroactive cover. Older files can still produce a claim today; retroactive cover determines whether they are included.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your activities, turnover and wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Does public and employers' liability insurance cover an unjustified reminder?
Usually not. Public and employers' liability insurance is intended for damage to property and people. An unjustified reminder causes pure financial loss: a financial disadvantage without anything being damaged. Professional indemnity cover is needed for that. If you also make home visits, you need both, because a knocked-over laptop at a debtor's home is ordinary property damage.
What is the difference from a court bailiff?
A court bailiff is a public official with powers you do not have: issuing summonses and writs, attaching property and carrying out evictions. A debt collection agency works exclusively out of court. That difference also shapes your liability: your risk lies in the content and the tone of what you write, not in enforcing a judgment.
Is an administrative fine insured?
No. Fines and penalty payments are punishments and are not insurable, whether they come from the regulator for debt collection services or from the Autoriteit Persoonsgegevens. What can be arranged is the cost of legal defence in such proceedings. Check whether your policy covers defence costs and up to what amount. That differs from insurer to insurer.
A file from years ago has now produced a claim. Am I covered?
That depends on the form of cover. Most professional indemnity policies work on a claims-made basis: what matters is when the claim is made, not when the mistake was made. Old mistakes are then covered as long as you have retroactive cover and the circumstance was not yet known when you took out the policy. Report a threatened claim at once; Article 7:941 of the Dutch Civil Code requires it.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
