Corporate services providers may have to up their insurance cover in the wake of new government regulations, an island insurance firm warned yesterday.

Freisenbruch-Meyer said that the new rules, which come into effect at the start of October, were designed to ensure that professional firms have appropriate coverage to protect them from major risks.

The company added: “Companies will only be seen as carrying on business in a ‘prudent manner’ if their insurance coverage fits the nature and scale of their operations.”

Gary Stockley, vice-president of broking at Freisenbruch-Meyer, said: “While this is the first time corporate services providers in Bermuda have been regulated in this way, Freisenbruch-Meyer Group has been providing similar insurances for our clients for more than a decade.”

He added that the firm can provide a combination of four types of coverage, including professional indemnity insurance, which covers clients for business services, directors and officers liability insurance, which protects those in senior positions, crime insurance against internal and external crime, as well as outside directorship coverage.

Mr Stockley said: “We take components of all of these and have a distinct insurance product that allows large and small businesses to operate with peace of mind.”

Freisenbruch-Meyer works with global brokerage firm Arthur J Gallagher to provide island clients with insurance coverage.

Tom Edwards, assistant vice-president of broking at Freisenbruch-Meyer, said the company had already assisted a number of companies to ensure they met the standards of Government’s Corporate Services Provider Business Act.

He added: “We want our clients and potential clients to leave our office knowing more about what this complex insurance consists of, what the new requirements are and how they can ensure their business is protected from possible risks.”