02 Feb 2015

Protect Your Estates and Reduce Your Own Liability by Insuring Assets

0 Comment

Protect Your Estates and Reduce Your Own Liability by Insuring Assets

BMS collaborates with TRG to make obtaining asset insurance quick, easy and economical

There are many moving parts when managing your Chapter 7 cases and obtaining insurance for assets may seem like a complicated, time-consuming chore. That’s why BMS has collaborated with Trustee Resource Group (TRG) to simplify and streamline the process for obtaining insurance quotes and to bind those assets under a policy in a quick, cost-effective and easy manner.

According to the Chapter 7 Handbook (§4.c.3.f), trustees must obtain control over the assets of the estate that appear to have value. In addition, the trustee “must immediately take all other steps which may be reasonably necessary to preserve the assets.”

Part of preserving the assets means making sure that there is sufficient insurance coverage – by the debtor, the secured creditor, or, as a last resort, the trustee. The handbook states “If a loss occurs as a result of the trustee’s failure to insure or protect estate property, the trustee could be subject to liability including a surcharge.”

How many potential liabilities do you have because assets of your estates are not sufficiently insured? If you’re like many Chapter 7 Trustee offices, chances are that the potential liability is significant. Failure to adequately insure assets is being flagged in audits more commonly these days.

Integration with BMS Software

BMS has updated the asset details screen in both CaseLink Office so that you’ll now find a “Request Insurance Quote” link on the Asset Detail Screen. In CaseLink Web, you’ll find a “Request Quote from TRG” button in the Assets module. Clicking on the link [or button] will generate a pre-populated email that includes the asset description and petition value. You can include additional information about the asset to help TRG provide an accurate insurance quote.

Once the email is sent to TRG, you’ll receive a quote back within 1 business day (typically even sooner). Once the quote is signed, TRG will bind the policy and the asset will be protected.

About Trustee Resource Group

Trustee Resource Group (TRG) is led by Thomas Tibble, CPA and a Chapter 7 Panel Trustee (and a BMS client for 22 years). BMS clients in 35 states already work with TRG so it was a natural fit for BMS and TRG to work together to help streamline the process for obtaining asset insurance. “As a Chapter 7 Trustee myself, I understand the unique situations that trustees face, the need to quickly get an asset insured, as well as the specific requirements of the bankruptcy courts and the UST,” says Tom Tibble.

TRG offers a 3-month minimum policy term and flexible payment options tailored to the unique needs of bankruptcy trustees.

Examples of assets typically insured include: Real property, Vehicles, Watercraft, Equipment, Land and Jewelry; however, other types of assets can also be insured. Most assets can be insured by TRG under an umbrella policy issued through American Insurance Group of Ohio (an A-rated national carrier). By being covered under this US-based national carrier, insurance can begin immediately, and the term can be as little as 3 months.