B

Bond

The insolvency practitioner requires coverage in the form of insurance, known as insolvency bond. In other words, this type of insurance is also called professional liability insurance. It is always a licensed insolvency practitioner who may benefit from such coverage. Insolvency bonds are also called penalty bonds, and most often the estate is the one supporting the costs of such bonds.

Bonds are issued for insolvency practitioner in the case they deal with insolvency matters of an individual, but also when they deal with insolvency matters pertaining to a company.