Liability Insurance in Europe

Liability insurance in Europe helps protect businesses from losing money if someone sues them. It covers claims from accidents, injuries, or property damage caused by the business, as well as mistakes made while providing professional services.

Professional Liability Insurance

A professional liability insurance company helps protect professionals from claims that they made a mistake or were careless in their work. It is used by professionals like accountants, architects, IT experts, doctors, and others who offer their services to clients.

Professional liability insurance is made to protect freelancers or self-employed people who take on more risk because of their work. It helps cover them if someone makes a claim for damages caused by a mistake or problem in their service.

Key Aspects of Professional Liability Insurance:

Coverage:

Protects professionals from claims about mistakes like negligence, errors or malpractice in their work.

Examples of Professionals:

Lawyers, doctors, accountants, consultants, architects, engineers and anyone who provides professional services.

Benefits:

Helps pay for legal costs, settlement payments and any damages if someone files a claim against you.

Common Situations:

Claims can happen due to mistakes in services, breaking a contract, not meeting required standards or giving bad advice.

Insurance Providers:

Some companies that offer professional liability insurance include New India Assurance, HDFC Ergo, Bajaj Allianz, United India Insurance, ICICI Lombard, and National Insurance Company.

Professional Liability Insurance Coverage

Professional liability insurance helps protect professionals if they make a mistake while doing their job. But it usually includes problems like negligence, errors, or not doing something they were supposed to do. If someone gets hurt or suffers a loss because of the mistake and asks for money, this insurance can help pay for it.

Inclusions:

Here’s a quick look at what professional liability insurance usually covers:

• Mistakes or errors in your work
• Missing important deadlines
• Not keeping promises in a contract
• Not finishing a service
• Being careless while providing a service
• Not meeting professional standards

Exclusions:

• Professional liability insurance does not cover:
• Criminal charges or breaking the law
• If you were under the influence of drugs or alcohol while working
• Cyber issues like hacking or data breaches
• Professional Liability Insurance Limits

Professional Liability Insurance Limits

In professional liability insurance, the sum insured is called the "Limit of Indemnity", and it works a bit differently than in other insurance types. If you're thinking about getting this insurance for your business, here are some key points to know:

• The Limit of Indemnity is set per accident during the policy period. This means there's a maximum amount you can claim for each incident.

• There are two types of limits:
  -AOA (Any One Accident) – the max amount paid for one claim
  -AOY (Any One Year) – the total amount paid in one policy year

• You can choose how the AOA and AOY limits are divided (their ratio).

• Before picking a ratio, you should decide the highest amount you’d need the insurance to pay for a single accident (AOA limit).

FAQs