When you work as a freelancer, such as lawyer, notary, chartered accountant, architect, software developer etc., you are directly liable for the quality of the work supplied to your clients. If to make errors is human, it is reasonable to be protected as much as possible against the financial consequences of your mistakes. This is because in case of your error causing prejudices, your are legally liable to repair the damages you caused.
The Professional Indemnity Insurance policy is designed exactly for such cases.
This insurance covers the financial losses you could suffer if you have to indemnify your clients for the breach of your professional duty by reason of any error, omission or negligence.In liberal professions, the range of possible errors covered under such insurance policies is quite large.For example, such a policy can cover the costs of replacing or restoring the documents of the client, for which the insurer is legally responsible and that have been destroyed, damaged or lost. The insurance policy can also cover defence costs.
It is very important to note that the professional indemnity insurance does not cover errors intentionally committed by the insured or its own material damages or losses resulting from the same errors.
The indemnity amount can be negotiated amicable agreement, in the mediation procedure or in court. The insurer, the insured and the prejudiced client may choose to determine the indemnity by the mediation procedure, in terms of the law. However, in case of disagreement upon the existence of a professional error or the amount of the prejudice, the indemnity shall be granted only based on a final and irrevocable court decision.
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