11 Sep Insuring Your Collection Agency: How to Protect Your Business
If you own a collection agency business, you know the dangers your business can risk during face to face interactions. But debt collectors can have other liabilities as well, both due to having office space for their business and due to acts of retribution or vandalism. If it’s been some time since you’ve reviewed your business’s insurance policies, make sure it includes the following areas of coverage to keep you and your bill collectors safe.
- General liability coverage: Even though people most often think of liabilities or damages arising from businesses that offer physical goods or off-site services, like a leaking roof or making false claims about a competitor, damages can occur in the financial world, too. Many of the advanced steps in bill collection can have severe ramifications for the financial reputation of the people your business contacts, especially if you work in a business-to-business field. If a debt is processed incorrectly and a payment is made but not fully recorded, your company can face liability claims and civil action.
- Allied lines insurance: If you work out of an office or own a property for your business, protecting the physical space with fire insurance coverage can help protect your business from ruin. But on its own, fire insurance leaves gaps for unprotected damage such as damage to accounts receivable and data-processing equipment and vandalism. Make sure your property is additionally protected with allied lines coverage to protect your financial equipment and to help your credit collection services get back on its feet after water damage or a vandal.
Debt collectors can face all the same risks of other businesses, such as physical property damage, but you can also face unique liabilities due to the financial stress debt collectors can accidentally place on individuals and businesses. Make sure your own business is prepared with additional liability insurance through Evolution Insurance Brokers.