Professional Liability Insurance
If you practice a profession that brings with it a high risk of pecuniary loss for your customers due to a possible incorrect advice, a professional indemnity insurance is necessary for you. The occupational groups concerned include:
- tax consultant
- Interpreter / Translator
- IT consultant and online portal operator
One can in this context also of a Property Damage Liability Insurance because professional liability insurance primarily regulates financial risks, similar to private liability insurance.
In the following cases your professional indemnity insurance secures your financial existence
> IT consultant
Starting with programming, through IT consulting or network hosting, through one incorrect advice can at any time sales losses or rights violations happen. The Professional Liability Insurance offers you protection for such financial losses.
> Creative and copywriters
Do you work as a creative or copywriter and want the costs for one? gone wrong print job If you do not take on your own, professional liability insurance in the advertising sector is the right choice for you.
> Management consultant
Especially consultants, interim managers or trainers can cause substantial financial losses if they make mistakes. Also, the resignation of the client from the project contract can be secured with the appropriate professional liability insurance.
Attorneys and patent attorneys admitted in Germany are subject to a statutory requirement Liability Insurance for financial losses. Only with existing professional liability insurance can the admission to the responsible bar association take place. We also recommend the co-insurance of the data protection risk and a protection against cyber damages.
No occupational group has such a high risk of occupational activity. Medical mistakes are always life threatening and therefore doctors are after the order of State Medical Association obliged to take out a professional liability insurance. Take, for example, only a gynecologist, who may be required to pay lifelong child maintenance payments due to poor sterilization, in order to assess the size of the existing risk.
> Website operators
As the operator of a website, a specialist portal or a blog, you must stand before third party claims for damages based on Trademark infringement, Photo License Injuries or Cyber damage to secure. Just online there are Abmahnvereine who have specialized in such violations and diligently sue for damages.
> Architects and engineers
Should you make a mistake with the Building design, for example in Fire protection commit that statics of a house, or with your planning environmental damage cause, it is good if your professional liability insurance takes over the resulting financial loss.
If you work in one of these professional groups or other services and your customer is financially damaged by your fault, they are required by law to reimburse the resulting financial loss. So that you do not have to make these compensation payments yourself out of your private assets, we recommend the conclusion of a professional indemnity insurance. It takes over the claims payments with justifiable claim of their customer and thus helps to protect their professional existence. As with the private liability insurance the professional liability checks the entitlement of the claim on the part of the victim and defends against unjustified claims for you. Thus is also one passive legal protection function included in the professional liability.
You can hedge two different types of risk in professional liability
1. Pure financial loss
Here, the professional indemnity insurance acts as a pure financial loss liability insurance. Especially for occupations that perform a consultant or service activities, this form of professional liability is necessary and often already required by law. (About lawyers and tax consultants).
Exemplary damage cases are for tax consultant high tax back payments due to advisory errors in the tax return. A financial loss to the customer has happened quickly and if they are the cause of their advice they must replace the damage.
2. Persons and property damage
Career Options, the in direct customer contact Being close to the customers also puts them at risk Personal injury or property damage to cause. For example Hairdressers, beautician and of course doctors. As well craftsman, the one with their activity at the customer’s property also quickly damage can cause. Your professional indemnity insurance protects your activity against claims for damages resulting from such personal injury and property damage and, in addition, from potential consequential damages, for example, if a customer can not take his appointment because of a damaged laptop.
Of course, a combination of the two types of benefits is possible and useful for some professional groups.
You must expect these professional liability insurance costs
We only can cost Examples give, because the professional liability insurance always depends on your individual field of activity.
Thus, to calculate their tariff, it is necessary to know exactly the nature of their professional activity so that the insurer can accurately assess the risk of damage and any amount of damage and calculate the appropriate tariff.
That’s how it is Premium for professional liability insurance always individual, However, it differs from insurer to insurer. In that case, you should always use a professional liability insurance comparison to find the most professional indemnity for your individual job.
You can limit the cost of your insurance coverage by choosing the amount of coverage, the amount of the deductible and the nature of your activity. In many cases, the professional liability insurance is calculated after a risk assessment by the insurance, so as to be tailored to the individual activity.
With these sums insured you are on the safe side.
Similar to private liability insurance, the decisive criterion for professional indemnity insurance is the choice of insurance insurance. Here, the individual risk of their professional activity determines the amount. If you advise larger companies on the introduction of new software and the company suffers a malpractice system failure with the following loss of sales in the amount of 500,000, – €, you are liable for this loss. Therefore, you should also choose a possible coverage amount accordingly high.
It is urgently necessary to estimate the potential risk of their activity accurately and, above all, realistically. Because your professional liability is only up to the amount of the agreed coverage, everything that goes beyond, they pay out of pocket.
Possible damages that are covered by the professional liability insurance
During the presentation to the customer, the projector slips off the table and injures the customer’s foot. The resulting costs of medical treatment, as well as the loss of earnings during the sick days take over the professional liability insurance.
A drug mixture is mistakenly dosed incorrectly and has harmful effects.
Distinction between professional liability insurance and public liability insurance
With the Public liability insurance are primary Personal injury and property damage covered that within their permanent establishment can happen. Professional indemnity insurance, on the other hand, is liable for financial losses that may arise as a result of their personal activities.
Basically, the transition between these two insurance benefits is fluid, but it is clear that the Public liability insurance for a whole operation applies while the Professional liability insurance for you as an individual entry.
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