Every Trustee in Bankruptcy has a duty to ensure that the assets of the Bankruptcy are adequately insured. This has traditionally been done by arranging separate cover or relying on insurances which are already in place on appointment.
The insurance for the buildings of private dwellings is normally arranged on a reinstatement (i.e. rebuilding cost) basis. A Trustee’s interest in a Bankrupt’s property may, however, only be limited and the Trustee may not want to go to the expense of arranging full reinstatement cover, especially if there is cover already in place.
A Trustee could have their interest noted on any existing insurance and not arrange their own cover. However, this course of action is not without risk. IRS has therefore, developed a cost effective range of insurance options for Bankruptcies, including Financial Interest cover. We are happy to discuss the options with you to ascertain which suits your business or develop a bespoke option if that is what is needed.