Insolvency Open Cover Insurance Facility

Automatic and cost-effective insurance for the insolvency process, insolvency practitioners, and their clients.

The new open cover scheme launched in September 2025 and features a £60m automatic property damage/business interruption hold cover limit for acceptable trades – together with a new LPA Price Match facility which enables Marsh to match the existing insurance cover and cost of any qualifying residential or commercial property for which you are responsible as receiver.

Key cover features include:

£60m automatic property damage/business interruption hold cover limit for acceptable trades.
£42m automatic property damage/business interruption hold cover limit for ‘Refer’ trades.
£10m automatic property damage/business interruption hold cover limit for unoccupied office premises of non-combustible construction.
LPA Price Match £30m limit.

In addition, the automatic hold cover facility includes:

Marine cargo
Freight liability
Group personal accident and travel

The open cover insolvency insurance facility provides automatic cover providing immediate protection upon appointment, subject to the terms and conditions. It is designed to streamline the insurance process and provide efficient coverage for insolvency practitioners (IPs).

The facility provides breathing space in order to obtain risk information before premium calculations are made, therefore ensuring that cost and cover levels are appropriate for each individual engagement whether this includes ongoing trading of the business or disposal of assets or other insolvency related activities.

The cover is flexible and can be adapted on an ongoing basis ensuring that costs are controlled by only paying for insurance cover that is required. The policy outlines the terms, conditions, and automatic coverage limits.

With automatic hold cover limits being enhanced for the following existing covers:

Computer breakdown cover: £1,000,000
Own plant breakdown cover: £500,000
Contract works cover: £5,000,000

Further value is driven by the availability of a 10% rate reduction after 12 months for qualifying cases and up to 15% price reduction for occupied residential properties.

Claims support

The dedicated claims support is enhanced for additional costs incurred in preparation of complex property damage/business interruption claims – up to £100,000 any one claim (for claims in excess of £250,000) and new claims support costs cover for serious injury claims with a new £10,000 limit.

Risk management

Enhancing our existing risk management capability we have also incorporated a new ‘risk management reward’ which allows for premium discounts where qualifying cases evidence superior risk management processes.

The insolvency insurance facility provides automatic cover giving immediate protection upon appointment, subject to the terms and conditions. It is designed to streamline the insurance process and provide efficient coverage for insolvency practitioners (IPs).

The facility provides breathing space in order to obtain risk information before premium calculations are made, therefore ensuring that cost and open cover levels are appropriate for each individual engagement whether this includes ongoing trading of the business or disposal of assets or other insolvency related activities.

The advantages of open cover insurance for the insolvency practitioners includes:

Efficiency: Cover is automatic with effect from the time and date of appointment (Subject to terms and conditions). This is followed by a 30-day discovery period, therefore, there is no requirement for full information to be provided immediately. This gives protection, comfort and saves time and administrative effort.
Cost-effectiveness: Costs are controlled by only paying for insurance cover that is required. Consolidated cover under a master policy provides cost savings
Flexibility: The facility is designed to cover all types of appointment regardless of whether there are short term insurance requirements for those cases where assets are sold shortly after appointment or longer-term insurance requirements for trading risks. Flexible payment options are also available
Comprehensive coverage: The policy wording is bespoke and has been specifically designed to cater for the insurance needs of Insolvency practitioners

Marsh works closely with Insolvency Practitioners to understand the scope of insurance coverage and policy limits that are required on the appointments that they take and adapt the master policy where appropriate.

Overall, the Insolvency insurance facility offers a streamlined and cost-effective solution for insolvency practitioners. Our scheme is exclusive to Marsh and provides comprehensive coverage for the variety of different strategies within the insolvency process.

Truck transport container on the road to the port.

Podcast

Risk in Context Podcast: Using data to improve fleet safety and insurance outcomes

24/09/2024

Report

Global Insurance Market Index

24/07/2025

Article

Top three liquidity risks for manufacturers in 2024

15/07/2024

Young business people shaking hands in the office. Finishing successful meeting. Three persons

Expertise

Risk Management for Insolvency

29/08/2025

European Commission Headquarters building in Brussels

Video

How could the EU’s updated Product Liability Directive impact you?

22/08/2025

View of skyscrapers from the glass ceiling

Article

Professional indemnity insurance (PII) market update for property and construction professional consultants

30/07/2025

Report

Management liability claims report: 2024 year in review

17/07/2025

Cyber security data protection business technology privacy concept.

Article

How accountancy firms can secure their technology transformation

10/06/2025

FAQs

Marsh has access to leading insurance markets worldwide, allowing us to find the most suitable and cost-effective insurance solutions for IPs. We can assist with:

insurance placements.
negotiate favourable terms and conditions.
risk mitigation solutions.
industry sector specialism.
and provide ongoing support throughout the policy period.

Having adequate insurance coverage is crucial in situations where a company is unable to meet its financial obligations. This is important in order to receive an appropriate insurance payout and to effectively safeguard the interests of the public.

A risk assessment involves identifying and evaluating potential risks faced by IPs and their clients. Marsh’s team of experts can conduct thorough assessments such as:

fire risk assessment.
engineering inspections.
health and safety reviews.
property valuations.
hazard identification.
cyber review.
ESG/climate risks.

They will analyse the specific risks associated with insolvency cases and provide recommendations for risk mitigation strategies.

Claims advocacy involves assisting IPs in navigating the claims process and advocating on their behalf with insurance providers. Marsh's dedicated claims advocacy team can help IPs:

negotiate with insurers,
understand the insurance coverage in place,
collate and present relevant information aligned to the policy wording,
and maximise compensation for their clients.

Yes, Marsh offers litigation support services to help IPs manage the costs and risks associated with pursuing legal action. This includes "after the event" and other litigation funding solutions, which provide financial protection and support for legal actions.

Marsh's team of experts works closely with IPs, offering strategic advice, insights, and innovative solutions to help achieve the best possible outcomes for their clients. We leverage our industry knowledge, market access, and negotiation skills to provide tailored solutions that align with clients' business objectives.

IPs can partner with Marsh by reaching out to our team of experts. We will work closely with IPs to understand their specific needs and challenges, providing customised solutions to support them throughout the insolvency process.