Professional indemnity insurance aims to protect the civil liability of professional service providers for losses caused to clients and third parties as a result of their acts or omissions.

This insurance covers losses that may arise if a professional has committed errors, negligence or carelessness in the performance of their services. Such professionals may include attorneys, consultants, engineers, architects, auditors, doctors, and other professionals whose work requires a high degree of competence and care.

This type of insurance helps protect both the professionals themselves and their business from financial risks associated with possible claims from clients or third parties who may suffer losses due to errors or deficiencies in the services provided. Insurance can cover various costs such as legal fees, damages, court costs and other costs associated with settling claims.

What does the insurance cover?

• Direct financial losses suffered by third parties due to the provision of substandard services.
• Losses related to harm caused to the life or health of third parties, including compensation for moral damages.
• Losses associated with damage to or destruction of third-party property, including financial losses incurred by third parties as a result of harm to their health or life, or direct damage to their property. This can include costs such as temporary rental expenses while the damaged property is being repaired.
• Costs incurred in the prevention of sudden and unforeseen environmental pollution.
• Losses related to damage to or destruction of documents entrusted to the professional.
• Legal and litigation expenses.
• Costs related to obtaining expert evaluations.

What factors influence the price of the policy?

• The amount of coverage (limit of liability).
• Sublimits for specific types of losses.
• Nature of the professional services provided.
• Revenue generated from professional activities.
• Number of professionals insured under the policy.
• Level of experience and educational background of the insured professionals.
• Types of losses covered by the policy.
• Deductible amount (policy excess).
• Previous claims and loss history.