Professional liability insurance as a factor of safety
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.
Properly defined and contracted professional liability insurance reduces the financial cost of the insured person since it provides them with financial protection in such a situation.
What professional liability insurance covers
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 jeopardising the business itself in the future.
Who is professional liability insurance intended for?
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.
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.
How to choose the right professional liability 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.
Do you need a proposal for 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 and activities. Contact us for an initial analysis and consultation.