Liability Insurance

Liability insurance is intended to cover claims for damages that may be made against you as a business owner or your company if others suffer damage due to your operations, while professional indemnity insurance specifically covers damages resulting from mistakes or negligence in the performance of agreed services provided by specialists in certain professions.

Commercial Liability Insurance

Liability insurance is intended to cover claims for damages that may be made against you, as a business owner or your company, if others suffer damage due to your operations. This can include both property damage and bodily injury, and such claims often involve large amounts.

The insurance is commonly referred to as voluntary liability insurance, as it is not mandatory by law.

Professional Indemnity Insurance

How does Professional Indemnity Insurance work?

People seeking professional services expect them to be delivered with expertise. If a professional makes a mistake in their work or neglects their duties, they may be liable for financial losses incurred by their clients. Such losses can be covered by Professional Indemnity Insurance. However, this insurance does not cover cases where the work itself is defective or when the client’s expectations regarding the outcome of the service are not met. It also does not cover liabilities that extend beyond the general rules of responsibility for the relevant profession.

In most cases, the Professional Indemnity Insurance must be active at the time a claim is reported, and it only covers losses resulting from errors or negligence that occurred during the policy period. Therefore, it is important to ensure continued insurance coverage even after retirement.


Examples of covered cases:

  • A construction manager fails to ensure that a building’s piping is installed according to approved plans, resulting in additional costs for corrections.
  • A lawyer neglects to file a claim in a bankruptcy estate within the required deadline, causing their client to lose the right to payments from the estate.


Who purchases Professional Indemnity Insurance?

Professional Indemnity Insurance is primarily intended for specialists and professionals offering specialized services based on specific qualifications and/or official licensing.