Professional liability insurance

The most frequently insured professional activities are such categories of specialists:
• Private doctors, pharmacological companies and organizations that conduct clinical trials of drugs
• Auditors and accountants
• Architects and designers
• Private notaries and lawyers
• Customs brokers and private security guards
• Dispatchers for cargo and passengers
• Realtors, appraisers and other specialists
According to the insurance contract, damage caused to health and life of a person is compensated, losses in case of damage to property, moral damage, loss of profit and damage to the reputation of the insured.

Professional liability insurance compensates not only for the damage inflicted, but also covers costs when clarifying the circumstances, determining the extent of the fault of the specialist, court fees and expenses for legal assistance.

Specialists who make professional liability insurance have different degrees of risk depending on the length of service and qualification, on how likely the claims of customers, on the type of activity and on the revenue for their services. It is also important that there are claims in the past. On average, insurance rates range from 0.5 to 1.5%, although at a high risk they increase to 5%, and at a low probability of an insured event, they fall to 0.2%.

Recently, the number of complaints from clients that have suffered from poorly implemented services has increased. Therefore, the management of companies and organizations carries out professional liability insurance of their employees to avoid financial losses in compensation for damage to customers, loss of time and image in litigation. In this case, all the risks are assumed by the insurance company, it makes payments to the victims. Therefore, the outflow of customers, and therefore financial losses will not happen. The registration of the insurance policy convinces customers of the good faith of the company, which takes into account the interests of all parties, both clients and business partners.

The audit company that provides professional liability insurance for auditors covers many of the risks that arise as a result of mistakes made by company specialists:
• When restoring and maintaining the accounting records of an enterprise
• When preparing financial statements and tax returns
• When auditing the documentation
• In providing advice on tax, business and financial legislation

The insurance company reimburses the losses to the customer, which arose due to the fault of the auditors in the event of incomplete payment of taxes, all costs related to the conduct of court cases, including the services of a lawyer, expenses for saving property that suffered damage in the event of an insured event. Payment is made by court order.

Medical clinics, research centers that carry out diagnostics and treatment of patients on a paid basis, carry out professional liability insurance of medical workers. This is especially true for surgeons, obstetrician-gynecologists, neonatologists, dentists, anaesthesiologists and resuscitators, because they are interested in protecting themselves in case of a lawsuit from the patient to the clinic for poor service. Insurance is also the responsibility of private doctors with a license.

Insurance event under the contract of professional liability insurance of doctors recognizes the damage to the life and health of the patient when diagnosing, during his treatment and when the death of the client occurs with the unintentional mistake of the insured.

When concluding a contract for the insurance of professional responsibility between the insured (organization) and the insurer (insurance company), the term of the contract must be clearly stipulated, which is an insurance event and the amount of insurance payment within which damages are paid.