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Collection Agents Insurance Program from Donald Gaddis Company Donald Gaddis Company offers a Collection Agents Insurance program designed for the specific liability exposures collection agencies and collection law firms encounter. As a wholesale broker with deep experience in this niche, we provide tailored professional liability and E&O solutions that reflect the realities of a business that relies on frequent outbound communications — calls, letters, emails, and faxes. Many standard professional liability policies contain exclusions for unsolicited communications. While those exclusions target spam or telemarketing abuses, they can unintentionally leave collection firms exposed because contacting consumers is central to their operations. We work with carriers to identify markets and negotiate coverage terms that address those communication-related gaps. Ideal Accounts and Appetite We place accounts for a range of collection-focused operations, including: Third-party debt collection agencies Collection attorneys and law firms Medical debt recovery agencies Retail and commercial receivable collection firms Accounts with frequent low-severity nuisance activity are evaluated on context; frequent minor complaints are not an automatic declination if loss patterns and controls are reasonable. Coverage Highlights and Advantages Negotiated coverage for claims tied to common communication practices (phone, email, fax, mail) Options to limit reporting of minor nuisance claims—particularly those resolved below a deductible threshold High-deductible structures with flexibility on reporting and claim handling Custom E&O and professional liability wording geared to collection industry exposures These features help protect insureds from harassment allegations, FDCPA-style claims, and other communication-based exposures that frequently generate complaints even when litigation does not follow. Underwriting Notes We maintain a fluid list of carrier partners, enabling us to match submissions to the best available market. Our underwriters understand the operational drivers of the collection industry and will work with you to structure terms that fit the account. Key items underwriters review include training and quality-control processes for collectors, complaint handling and dispute documentation, volume and type of outreach, and any prior claim patterns. We can help present accounts with frequent low-severity incidents in a way that emphasizes controls and risk management. Territories and Availability We can write business in most states, including: AL, AZ, CA, CO, FL, GA, HI, IL, IN, IA, KS, MI, MN, MO, NE, NY, NC, OH, OK, PA, SC, TN, TX, VA, WV, and WI. Policies may be admitted or non-admitted depending on the carrier selected and state filing requirements. Why Work with Donald Gaddis Company? As a wholesale broker focused on niche professional lines, Donald Gaddis Company brings market access, technical underwriting knowledge, and advocacy. We understand how to negotiate terms that reflect the practical needs of collection firms and to frame submissions so carriers see the full picture—controls, procedures, and claim context. Example scenarios where this program fits: You have a mid-sized third-party collector that makes high volumes of outbound calls and has several nuisance complaints a year but no lawsuits. We can seek terms that avoid inflating loss runs with every minor incident. You represent a small collection law firm that wants professional liability coverage that explicitly addresses communication exposures typically excluded by standard E&O forms. We can target markets that will consider negotiated communication coverage. If you need help placing an account that struggles with exclusions tied to core collection activities, or you want a market that understands frequent low-severity complaint patterns, connect with our underwriting team. Frequently Asked Questions What types of accounts are a good fit for this program?This program is ideal for debt collection agencies, collection law firms, and third-party debt recovery firms, including those specializing in medical or retail collections. How does the program handle nuisance claims?We offer options that allow insureds to avoid reporting every minor claim, especially those settled under a certain percentage of their deductible. This helps reduce unnecessary loss run entries. Can you cover claims related to communication practices?Yes. We work with carriers to negotiate coverage for exposures related to phone calls, emails, faxes, and other forms of contact that are typical in the collection industry. What states is this program available in?We can place business in most states, including AL, AZ, CA, CO, FL, GA, HI, IL, IN, IA, KS, MI, MN, MO, NE, NY, NC, OH, OK, PA, SC, TN, TX, VA, WV, and WI. Do you require reporting of every claim or incident?No. For insureds with high deductibles, we can often structure terms that allow them to report only significant claims—typically those exceeding 50% of the deductible. Need help placing an account? Connect with a market specialist.

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What is Insurance for Corporate Collections? Insurance for corporate collections is a specialized type of property insurance that protects an organization’s valuable assets, including artwork, historical artifacts, rare books, antiques, and other collectible items. These collections often represent a significant financial and cultural investment, making proper coverage essential for loss prevention and recovery. Who Needs It This coverage is important for a variety of organizations that maintain high-value collections, such as: Corporations with art or historical collections in offices or headquarters Museums and cultural institutions Financial institutions and law firms with lobby displays Universities with archival or scientific collections Nonprofits and foundations with curated items or exhibits Even if an organization does not display its collection publicly, insurance helps protect against potential loss, damage, or theft. What It Typically Covers Corporate collection insurance generally covers loss or damage caused by: Theft or vandalism Fire, smoke, or water damage Accidental breakage Natural disasters (depending on policy terms) Transit and off-site exhibitions (if included in the policy) Some policies may also offer coverage for restoration costs, depreciation, and temporary storage expenses. Common Exclusions and Limitations Like most insurance policies, coverage for corporate collections has exclusions and limits. Common exclusions may include: Wear and tear or gradual deterioration Damage caused by pests or mold Items without proper documentation or appraisal Losses during unauthorized transport or storage Coverage limits are usually based on appraised values, so regular updates are essential to keep the policy accurate. Factors That Influence Cost Several factors can impact the cost of insuring a corporate collection: Total appraised value of the collection Type and rarity of the items Security and protection measures in place Storage conditions and display environment Frequency and distance of transportation or exhibition Insurers may also consider the organization’s claims history and risk management practices. Proof of Insurance and Compliance Having proof of insurance for corporate collections can be essential for legal, financial, or exhibition purposes. Some lenders, public institutions, or venues may require it before accepting a collection for loan or display. While requirements vary by state and institution, maintaining active coverage and documentation helps support compliance and risk management. How to Get a Quote Getting coverage for your corporate collection starts with an accurate appraisal and inventory. Work with an experienced insurer to assess your needs and create a customized policy. Get a quote today to protect your organization’s valuable assets. Frequently Asked Questions What qualifies as a corporate collection?A corporate collection can include artwork, antiques, rare documents, and similar items owned by a business or institution for cultural, historical, or investment purposes. Do I need an appraisal before getting coverage?Yes, most insurers require a professional appraisal to determine the value of each item in your collection for proper coverage. Is coverage available for items on loan or exhibition?Many policies offer optional coverage for items in transit or on temporary display, but you must confirm this with your insurer. Can I insure just part of my collection?Yes, you can choose to insure specific pieces, but it's important to ensure all high-value items are listed and covered appropriately. Does homeowners or general liability insurance cover corporate collections?Standard policies typically offer limited or no coverage for specialized collections. A dedicated policy is recommended for full protection. Still have questions? Talk to a local insurance expert.

Collections
COLLECTIONS The purpose of a collection system is to collect money owed to the agency without alienating the insured. In this section, we will answer the following questions: Who should do the collecting? What are the steps to developing an effective collection system? When should you collect? Why must every agency set a goal concerning collections? OVERVIEW Who Should Do the collecting? One staff person should be responsible for the collection system. This person should be the bookkeeper, financial manager, or another individual in the accounting department. Do not involve the producer in collecting unpaid premiums. A producer cannot be the 'good guy' who develops a friendly relationship with the insured and then the 'bad guy' at collection time. What Are the Steps to Developing an Effective Collection System? 1. Appoint a responsible collection manager. 2. Establish a list of key accounts (the agency's largest and best accounts), which are not subject to automatic collection rules. These accounts receive special attention by telephone from the collection manager. 3. Establish an agreement with CSRs and anyone who processes new and renewal policies that a policy inception date cannot go by without a binder and a billing. 4. Proceed to get payment within 15 days of the renewal date, or issue a notice of cancellation directly to the insured (with the exception of previously agreed-upon key accounts). Use either an automated aged-accounts receivable printout or your manual bookkeeping system. 5. Educate all producers, agency staff people, and insureds regarding the collection policy of the agency. 6. All existing past-due accounts must be called, then followed up by a letter that advises them to pay the balance due within 10 days or pay a substantial deposit and sign an installment notice for the balance. If you have some bad accounts, it's wiser to cancel them and turn the balance over to an attorney immediately for collection. Waiting only makes matters worse from a collection standpoint. When Should You Collect? New and Renewal Business. The producer must tell the insured exactly what the collection policy of the agency is, how it works, and that company credit procedures do not allow the agency to make exceptions. The producer must collect at least 25% or more of the premium with this binder. (Make sure insureds understand what is meant by needing this amount now to 'bind the contract.') If the binder is mailed with invoice attached, be sure to explain the need for the deposit 'by return mail, to bind the contract. 'You may wish to type on the binder 'If payment is not received within 15 days after effective date, this coverage will be rescinded.' In the event that the insured cannot pay the full premium within 15 days of the effective date, suggest premium financing. If the balance is not paid within the time frame given, send a direct notice of cancellation if you have the authority to do so; if not, request that the company send direct notice. (Companies usually ask for a written request.) Recommend to the insured that a due date on the first of the month might be advantageous because: For the insured, this simplifies payroll reporting, and makes for timely installment billings and uniformity of handling. For the agency, there's an average of 15 days of additional investment income, it's easier to collect, and it conforms to agency accounting procedures. Endorsements, Audits, Installments. Since the credit period your agency receives to collect this type of additional premium is usually shorter than that given on a new or renewal premium, it is imperative that the request for payment be stated very clearly when an endorsement, audit, or installment is sent out or delivered to the insured. Remember: Audits are fully earned and often cannot be turned back to the company for direct collection. Installments, if not collected when due, can result in an earned premium larger than the deposits when you finally do cancel. These may not be collectible. Endorsements, if not collected when charged, may end up being due at the end of the policy period, when it's likely they cannot be collected. Why Must Every Agency Establish a Goal Concerning Collections? There are three reasons why this is important: 1. Bad debts are bottom-line losses. 2. Large account receivable balances reduce interest income. 3. Unpaid accounts turned back to the company indicate bad management practices to the company, often resulting in canceled contracts or stricter underwriting attitudes. Let's look at the steps that occur during a 30-day cycle: 1-31 DAYS: Producer orders invoice Policy inception date 15 DAYS: Reminder letter sent Direct notice of cancellation or picks up policies to return company for flat cancellation 15 DAYS: Date agency responsible for paying premium These letters may be sent to an insured who has not paid within five days after policy inception.

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