Professional liability insurance

Overview of Professional Liability insurance

In the field of professional services, even the smallest negligence or error can lead to serious consequences, including legal proceedings and reputational damage. Professional liability insurance provides protection for those who provide professional services or professional advice to prevent legal liability and economic losses caused by errors, omissions or mistakes. This kind of insurance is suitable for many industries, such as healthcare, law, accounting, engineering, consulting and IT consulting.

Scope of professional liability insurance

• Professional errors and omissions: Covers economic losses caused by errors, omissions or mistakes in your professional services or suggestions.
• Breach of contractual obligations: If you fail to fulfill the service or delivery requirements in the contract with the customer.
• Violation of legal obligations: When your behavior violates laws, regulations or industry standards.
• Privacy and data security: Covers data leakage, unauthorized access, or data loss that may occur when processing customer data.

Areas not covered by professional liability insurance

• Commercial responsibility: It does not cover responsibilities related to commercial business activities, such as contract performance, financial management, etc.
• Pollution-related responsibilities: Does not include liability caused by pollution or environmental pollution incidents.
• Liability arising from fraud or dishonesty: Does not include liability caused by fraud, dishonesty or intentional violation of the law by the insurance beneficiary.
• Unpaid fees: If the customer fails to pay for your service, the insurance usually does not provide protection.

Choose the right insurance policy

When purchasing professional liability insurance, it is recommended that you carefully read the insurance terms and conditions to ensure that you understand your specific insurance coverage. The specific scope and protection content of insurance may vary depending on the insurance company and the specific insurance plan.