PROFESSIONAL LIABILITY

Collection Agency Liability Insurance

Monarch E&S is proud to offer executive, professional and cyber liability coverage through our sister company, CSRisks. CSRisks is a leading executive, professional and cyber liability wholesale insurance brokerage. Their knowledgeable experts provide analytical capabilities, a consultative approach and expert insurance broking services. With access to over 30 A rated insurance carriers, both admitted and non-admitted, their specialization means they quickly provide the cost-effective coverage and analysis retail agents rely on.

What is Collection Agency Liability Insurance?

Collection Agents Liability Insurance is Errors & Omissions coverage for companies that recover past due debt. Collection Agencies are used by lenders or creditors and often they are hired after the creditor has made several failed attempts to collect. There are strict regulations that these companies must adhere to and can experience claims from negligence or accidental noncompliance. The Errors & Omissions coverage applies to both the defense and loss costs.

Why Do Collection/Credit Agencies Need Professional Liability Insurance?

Defense for suits alleging failure to comply with the Consumer Protection Acts are the most common suits these specialist face. FDCPA lawsuits are rising every year. Even frivolous claims cost money to defend; thus, this coverage is vital to a Collection Agent’s business

Typical claims for Collections Agencies E&O are technical violations under the FDCPA or TCPA, such as:

Failing to properly disclose that the caller is a debt collector
Failing to properly disclose in writing that the insured is collecting a debt
Calling a cell without consent or after consent is withdrawn
Calling the wrong person on a cell – no consent
Charging improper fees when accepting payment via CC (i.e., unlawful convenience fees)
Contacting friends, family, co-workers of the debtor for more information
Intimidation over the phone / aggressive call tactics after authorized hours or numerous times a day.