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Professional indemnity insurance

WELL PROTECTED WHEN THINGS GO WRONG

You've given your client the wrong advice, missed a deadline or otherwise made a mistake. It can happen – and perhaps even cause considerable damage. In cases like these, you or your company will be held liable for your client's financial loss. Professional Indemnity insurance protects you against precisely this kind of claim.

Insurance coverage

 

Professional Indemnity insurance is by far the most important form of cover for self-employed people and SMEs involved in occupations providing advisory and consultancy services. Especially if they work in the fiduciary, legal consultancy, mediation or similar sectors. Professional Indemnity protects you and your company against the financial claims of third parties who suffer damage because you advised them incorrectly. Certain types of profession are required by law to take out this cover.

 

 

What is insured?

Third-party financial claims for which you are liable as a result of giving incorrect advice. In most cases, professional indemnity insurance also covers personal injury or property damage and the costs involved in defending claims, such as legal opinions, lawyers' fees and court costs.

 

 

WHO is insured?

  • Attorneys-at-law
  • Notaries
  • Mediators
  • Accountants
  • Tax consultants
  • Business consultants
  • Fiduciaries
  • Auditors
  • Business process outsourcing companies
  • Real estate fiduciaries
  • Construction (client) consultants
  • Executors
  • Real estate and property managers
  • Real estate brokers
  • Directors and officers of outside entities
  • Bankruptcy administrators and liquidators

How you benefit

  • You are protected against claims for damages.
  • You will be defended against unjustified claims.
  • Optional: office liability for personal injury and property damage.
  • Multiple aggregate limits possible.
  • Handling of claims that fall within the deductible.

How professional indemnity insurance works

 

 

real-life EXAMPLE

  • Lawyer: Failure to check contract properly

Mr Muster, a lawyer, is asked by an IT specialist to read over a contract for him. It relates to a major order from a US company, which is insisting on applying its own general terms and conditions. Muster is supposed to evaluate the risks involved. However, he fails to mention in his report that the low contractual penalty could turn out to be much higher. As the IT specialist is unable to meet his obligations, this is precisely what happens. The IT specialist claims damages of CHF 100,000; the lawyer's insurer covers it.

  • Property manager: Missed notice deadline

Mr Weber, a property manager, is asked by a houseowner to rent out an apartment. The new tenant can stay in the apartment until the owner's daughter returns from a trip abroad and moves in herself. Property manager Weber issues a contract for an indefinite period, but forgets to give the tenant notice in good time. The tenant is allowed to stay on for another six months, and the owner has to find alternative accommodation for his daughter. The owner claims these rental costs as damages; the property manager's insurer takes care of the payment.

FREQUENTLY ASKED QUESTIONS

This type of insurance is compulsory for certain professions, for example lawyers. It is strongly recommended for companies and self-employed people involved in providing advisory or consultancy services. Our experts will be happy to analyse your own particular situation.

Professional indemnity insurance covers the professional and business risk of all employees in the company.

Useful documents