What does a professional liability insurance?
As the practice shows, such a disclaimer of conditions is deceptive, because in most cases disclaimers or limitations in terms and conditions of a judicial review stand. The legal liability can not be "spoiled" so easily.
Excessive damage can be absorbed by a professional liability insurance. However, caution: professional liability is not equal to professional liability.
Dangerous retreats of professional liability insurers
For instance, many providers traditionally only cover personal injury and material damage as well as resulting consequential damages, leaving the protection of so-called pure assets - including, for example, legal violations, deliberation errors or programming failures - completely out of the question.
And also in terms of co-insurance of the already mentioned contractual liability, most insurers are cautious. In particular, when the occupational liability insurance is offered on the basis of the General Liability Conditions (AHB). These categorically exclude claims that go beyond legal liability.
Separating wheat from chaff
The "wheat from the chaff" also separates itself when it comes to "securing violations": some insurers make the protection in the case of infringements dependent on a previous legal review, which is difficult to implement in practice.
Or they completely exclude the cost overpowered in the case of legal violations in Common Law countries (USA, England, Canada) - in times of global professional services a dangerous insurance gap.
Checklist - Important criteria of professional liability insurance
But it goes differently, of course. In order to sensitize freelancers and self-employed workers for what a good professional liability insurance can provide for protection, I have put together a checklist with selected criteria:
- The definition of insured activities and services should be kept open (so-called open cover). The co-insurance of activities from overlapping industries is also optimal.
- The current professional liability insurance should also provide protection for pure property damage - including, for example, infringements.
- Claims in the area of contractual liability as well as breaches of secrecy agreements and data protection laws should be insured.
- Publication risks, eg by self-marketing, own website, blogs or social media profiles, should be covered. Likewise, violations of competition and advertising.
- The territorial scope should apply at least to Europe and Switzerland. Online Business recommends worldwide coverage.
- Depending on the business model and the branch of the self-employed, the professional liability insurance should also cover optional claims, such as
- Rescission of the client from the project,
- Personal liability (corporate liability) as managing director or interim manager
- certain typical contractual penalties in terms of contract or project contracts
- Damage caused by hacker and cyber attacks (DoS attacks, computer abuse, data theft, etc.)
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