Liability insurance for collection agencies - Essential protection against damage claims
As a collection agency you are busy every day to collect outstanding invoices and progress on behalf of customers. This brings legal and financial risks. An administrative error, incorrect seizure or incorrect communication can lead to damage claims from debtors or clients. With (company) liability insurance and professional liability insurance for collection agencies you protect your company against financial risks and legal costs, so that you can operate without worry.
Why a liability insurance for collection agencies?
Collection agencies work with sensitive financial information and strict laws and regulations. Errors such as collecting an already paid claim, unlawful pressure on a debtor or incorrect legal advice can lead to legal disputes and claims for damages. Without the correct insurance, these costs can increase considerably. Liability insurance offers coverage for:
✔ Material damage- for example, if you accidentally cause damage to the property of a customer or debtor
✔ Personal injury- coverage if a debtor or employee is injured by your work
✔ Legal costs- protection against high lawyer and litigation costs in the event of liability claims
✔ incorrect collections or incorrectly worked or wrongdoor
With liability insurance for collection agencies you prevent financial risks and you can continue to work professionally.
We compare liability insurance Finass insures ) with the best insurers, so you get the best and most affordable premium from us liability insurance
Which liability insurance policies match collection agencies?
✔ Business liability insurance (AVB) - Protects against claims from third parties , such as material damage or personal injury causes during your work.
✔ Professional liability insurance (BAV) - essential for collection agencies, covers financial damage due to incorrect collection procedures, incorrect communication or legally incorrect advice .
Professional liability insurance is especially important for collection agencies that give and mediate legal advice in claims, whereby errors can have direct financial consequences for customers and debtors.
How do you choose the correct liability insurance as a collection agency?
When taking out liability insurance for collection agencies and financial service providers, it is important to take into account:
🔹 coverage area - Do you work nationally or internationally? Make sure your insurance covers this.
🔹 Maximum insured amounts - Ensure sufficient coverage in the event of large damage claims.
🔹 Cover for legal errors - Check whether your insurance provides protection with claims due to incorrect collection procedures or incorrect advice.
🔹 Insurance for self -employed people and larger collection agencies - do you work alone or with a team? Make sure everyone within your organization is well insured.
With the correct liability insurance you can work professionally and without financial risks as a collection agency .
Frequently asked questions about Liability :
With liability insurance you are insured if you are legally liable for damage. For example, if you cycle into a parked car, your cat knocks over an expensive vase or if your children shoot a ball through the neighbor's window. But also if you, your child or pet injure someone. Not every damage is insured. Consider intentional damage or damage caused with a motor vehicle. Rented items are also not covered by your liability insurance. For example, if you rent a sander for that painting job in the house. Or if you rent a party tent for a garden party.
Liability insurance reimburses the damage you cause to other people's belongings. Like the television that slips out of your hands during a friend's move. Or your child who cycles into the neighbor's car. Or if someone else is injured through your fault.
Liability insurance for private individuals (AVP) covers damage that you or one of your family members causes to someone else when you are not driving a car or other motor vehicle . This applies to damage to property and persons (personal injury).
You take liability insurance because you want to protect yourself and your family against the risk of liability. You can be held responsible if someone is injured through your fault. But also if you accidentally damage other people's property. Resulting in a claim for damages.
The liability insurance does not provide coverage for: damage to rented items. damage that you have caused intentionally. damage occurred during your work.
Take out a liability insurance for collection agencies today!
Do you manage a collection agency or do you work as a collection expert and do you want to protect your company against damage claims and legal costs? Then choose a specialist professional and business liability insurance for collection agencies and avoid financial risks. Compare the best insurance policies now and request a quote immediately!
