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Debt Collector Professional Indemnity Insurance

Professional Indemnity cover for debt collection agencies, mercantile agents, and credit recovery professionals. Protection for collection services, compliance, and trust account management.

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Debt collection means navigating strict regulatory requirements while pursuing recovery outcomes for creditor clients. With ACCC and ASIC scrutiny increasing, comprehensive professional liability protection is essential for modern collection practice.

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The Challenge

Debt collectors face claims from two directions: creditor clients if collections fail or funds are mishandled, and debtors if collection practices cross legal or ethical lines. Regulatory compliance adds another layer of exposure that generic PI policies don't always address well.

Our Approach

Our brokers have direct experience in the collections industry, working across consumer and commercial recoveries, asset finance, hardship, and legal recoveries for major banks, non-bank lenders, and tier two financiers. We work with debt collection agencies, mercantile agents, skip tracers, and field agents to source coverage from insurers who actually understand this industry.

WHY TANK INSURANCE

Why debt collectors choose us

Debt collection requires insurers who understand the regulatory framework and litigation exposure in credit recovery. We know this industry because we've worked in it, across consumer collections, commercial recoveries, hardship, asset finance, and legal recoveries for the big four banks and non-bank lenders.

Professional brokers discussing debt collector insurance requirements

01

We Know the Industry

Our team has hands-on experience in collections, from field officers and skip tracers through to hardship, consumer, commercial, and legal recoveries. We understand the exposures because we've lived them.

02

Compliance Coverage

Regulatory compliance failures can result in significant claims. We ensure your policy covers claims arising from alleged breaches of collection guidelines, the ACCC Debt Collection Guideline, and applicable legislation.

03

Trust Account Protection

Handling recovered funds creates trust account liability. Your PI policy should cover errors in fund management and remittance to clients.

04

Creditor Panel Requirements Met

Major creditors, banks, and non-bank lenders require specific PI coverage from collection agencies as a condition of appointment. We make sure your policy meets those specifications.

YOUR BROKERS

We know this industry. We've worked in it.

Marel and Jack have direct experience in collections, from consumer and commercial recoveries through to asset finance, hardship, and legal recoveries for the major banks. That background shapes how we assess risk and find the right cover for collection businesses.

Marel Pencev, Principal Insurance Broker at Tank Insurance

Marel Pencev

Principal Insurance Broker

LinkedIn
Consumer CollectionsCommercial RecoveriesAsset FinanceHardshipLegal RecoveriesBig Four BanksNon-Bank LendersThomson Geer

Before founding Tank, Marel spent years in collections across consumer, commercial, and asset finance portfolios. He worked for Commonwealth Bank, MoneyTech, and Thorn Business Finance, and handled legal recoveries at Thomson Geer for the big four banks, tier two banks, and non-bank lenders.

He's worked across hardship, consumer and commercial collections, and asset finance, which means he understands the full spectrum of what debt collectors deal with day to day. From field officers and skip tracers through to in-house legal recovery teams, he knows the operational and compliance pressures this industry carries.

That experience directly informs how Tank assesses PI risk for collection businesses. We know what the exposures look like from the inside.

Jack O'Hagan, Insurance Broker and Head of Operations at Tank Insurance

Jack O'Hagan

Insurance Broker | Head of Operations

LinkedIn
Asset Finance CollectionsLegal RecoveriesNon-Bank LendersTier Two BanksProfessional IndemnityBachelor of LawThomson GeerThorn Business FinanceFinstro

Before moving into insurance, Jack worked in law and asset finance across Thomson Geer, Thorn Business Finance, and Finstro. His roles included legal recoveries and process improvement for collection operations, giving him a direct understanding of how collection businesses are structured and where things can go wrong.

His legal training gives him a sharper read on policy wording than most. He knows what the exclusions actually mean in practice and can identify the gaps that generic PI policies tend to leave for collection businesses.

Jack now leads operations at Tank and specialises in Professional Indemnity for financial services businesses, including hard-to-place risks that don't fit standard insurer appetite.

RISK ASSESSMENT

Key Professional Liability Risks for Debt Collectors

Debt collection exposes you to claims from both creditors and debtors. Understanding these risks is the starting point for getting your coverage right.

Pursuing the wrong debtor and causing reputational harm or distress
Harassment allegations from collection activities
Privacy breaches exposing debtor information
ACCC and ASIC compliance failures
Trust account errors affecting client funds
Incorrect debt amount calculations
Statute of limitations errors on time-barred debts
Defamation from credit reporting mistakes

Each collection agency faces different exposures depending on debt types, client base, and collection methods. Consumer debt, commercial recoveries, asset finance, and legal recoveries all carry distinct risk profiles. We assess your specific operations to ensure your coverage matches the work you actually do.

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POLICY SCOPE

What Debt Collector PI Insurance Covers

Professional Indemnity insurance for debt collectors responds to claims arising from your professional collection services. Policy terms vary, so it's important to confirm coverage with your broker before you bind.

Professional in office setting representing debt collection and credit recovery services
Professional in office setting representing debt collection and credit recovery services

Usually Covered

✓ Debtor identification errors
✓ Incorrect debt amount calculations
✓ Privacy and confidentiality breaches
✓ Trust account management errors
✓ Compliance failures in collection activities
✓ Legal defence costs for professional negligence claims

Not Typically Covered

✕ Deliberate harassment or criminal conduct
✕ Fraud or theft of collected funds
✕ Regulatory fines and penalties (varies by policy, confirm with your broker)
✕ Physical altercations during field collections (Public Liability required)
✕ Cyber incidents including data breaches (separate cover required)
✕ Employment disputes

Policy terms vary between insurers. We review your specific collection operations and confirm that coverage matches your professional activities before you bind.

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QUESTIONS

Debt Collector PI Insurance FAQs

PI insurance for debt collectors covers claims arising from professional negligence in debt collection services. This includes errors in debtor identification, incorrect debt amounts, compliance failures, privacy breaches, and trust account mistakes. Coverage extends to legal defence costs and compensation for alleged negligence in collection practices. We recommend reading your policy wording carefully, as coverage scope varies between insurers.
Yes, PI insurance is strongly recommended for all debt collectors and credit recovery businesses. If your business holds an Australian Credit Licence (ACL) or operates under one, you'll have obligations under the National Consumer Credit Protection Act. Many creditor clients, particularly banks and non-bank lenders, also require agencies to hold adequate PI coverage before onboarding them. The potential for harassment claims, privacy breaches, and compliance failures creates real liability exposure.
Key risks include pursuing the wrong debtor and causing reputational harm or distress, harassment allegations from collection activities, privacy breaches exposing debtor information, ACCC and ASIC compliance failures, and trust account errors affecting recovered funds. Some states also have their own licensing requirements for debt collectors and mercantile agents, which adds another layer of compliance exposure.
PI insurance can cover defence costs and compensation for claims arising from alleged unreasonable collection practices. Deliberate harassment or criminal conduct is typically excluded. A well-structured policy covers claims where your collection methods are alleged to have crossed the line, even if you believe you acted appropriately. This is one of the more common claim types in this industry, so it's worth confirming coverage with your broker before binding.
Coverage requirements depend on your collection volumes, debt types, and client requirements. Many agencies find $2-5 million appropriate, but agencies collecting high-value commercial debts or working for major financial institutions may need higher limits. Major bank and non-bank lender panels typically specify minimum coverage levels as a condition of appointment. We assess your operations and recommend appropriate coverage based on your client base and risk profile.

Professional Indemnity Insurance for Debt Collection

Whether you're a boutique agency, a field collection business, or a large credit recovery operation, we can find PI cover that protects your business and meets creditor client requirements. Talk to brokers who actually know this industry.

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Expert Review: 21/02/2026

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