EuroSolutions osiguranje od profesionalne odgovornosti

Professional Liability Insurance for Working with a Peace of Mind

Professional liability insurance has a growing importance and role in business, as it protects individuals and companies from costs that may arise from errors, omissions or improper business conduct. At the same time, clients and customers of the insured person are increasingly demanding that a service provider or business partner has an adequate professional liability insurance policy, as this relieves them of the risk of uncollectible damages that they could suffer in case of unforeseen events, errors or omissions of the other party.  The complexity of business operations in all sectors is growing, and on the other hand, the market is increasingly competitive, and the expectations of clients and customers are increasing. Along with that, the importance and purpose of errors and omissions insurance for professionals also grows.

Professional liability, from the point of view of law and insurance, refers to the obligation of an individual or a company to perform their professional obligations and duties responsibly. Notwithstanding the attention and effort invested in the implementation of business tasks and duties, mistakes can occur, and some of them can have severe consequences for clients or third parties. Such consequences are often in the form of damage, which can result in legal proceedings and, subsequently, compensation claims. In such situations, professional liability insurance reduces the financial cost of the insured, as it provides financial protection to the insured person in the event of a claim for damages due to errors or omissions during performance of their professional duties.

What does professional liability insurance cover?

Professional liability insurance covers the costs of legal representation, court fees, payment of damages, and other costs that may arise as related to a claim for compensation and court proceedings. Bearing in mind that the potential damage resulting from an error can reach extremely high amounts, without this insurance companies and individuals could be exposed to significant financial burdens that could seriously damage the financial stability of the business, to the point of jeopardizing the business itself in the future.

Who is professional liability insurance intended for?

Professional liability insurance is generally not limited to certain industries or professions and is applicable in all industries and sectors including medicine, law, finance, engineering, architecture, information technology, security, etc. As each profession carries specific risks and challenges, in terms of the possible consequences it can have on clients, professional liability insurance adapts to those needs and specifics.

What is the appropriate professional insurance policy?

Considering professional liability insurance and making a decision about it implies a very careful analysis of the potential risks of performing the activity, the damage that the client or customer could suffer in case of mistakes, as well as an analysis of one’s own financial and professional capacity. The proper assessment of the scope of coverage, the amount of the premium and the insurer is the key and most important set of activities when making a decision. In doing so, it is also necessary to analyse and decide whether an individual or company insurance is required, whereby the insurance may cover all employees or only some of them, not necessarily relevant key persons, but also a wider array of employees.

Need quality advice regarding professional liability insurance?

Based on best practices and experience in insuring businesses and individuals against numerous risks, EuroSolutions also has professional liability insurance in its portfolio, which we can enter into with different insurers covering many of risks associated with specific industries. Contact us for an initial analysis and consultation.

Professional insurance provides security and removes the risk of potential damage, thus enabling companies and employees to focus on their operations without having to constantly worry about possible unforeseen events, errors and their consequences.