Professional Indemnity Insurance for Debt Collectors covers financial losses of clients or other third parties the collector is liable for due to errors made while providing professional service. According to the Debt Collections Act No. 95/2008, debt collectors are required to carry professional indemnity insurance and it is a condition of their professional license.
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The insurance does not cover physical injury or damage to property.
The insurance is valid in Iceland.
You must report any damage as soon as possible and no later than one year from the date of the damage.
You must ensure that all the information in the insurance policy is accurate.
You must inform us of any changes in your address, telephone number, and email address.
You must follow the precautions in the terms of the insurance policy.
The premium must be paid on the due date. When the insurance policy is issued or renewed an electronic claim is created in your online bank. You have the option to distribute the premium payments by:
Credit card payment, where the premium is charged monthly to a credit or debit card.
Direct payment, where your bank account is debited monthly.
Corporate distribution, where the premium can be paid in monthly payments.
The insurance policy takes effect when an offer is accepted and is renewed annually until it is canceled.
Individuals and companies with fewer than five full-time positions can cancel the insurance at any time and it will expire at the end of the following month after the cancellation is received. Other companies can cancel their insurance one month in advance before the end of the insurance period.
The cancellation must be in writing, for example with an electronic signature.
Sjóvá is obligated to inform the authorities or regulators about the cancellation of the mandatory professional indemnity insurance as it is a condition for the licence to practice the relevant profession.
