Professional Liability Insurance
The professional indemnity insurance is a liability insurance for certain professions have the wreak by possible incorrect advice an increased risk of financial losses. This includes, for example, lawyers ( professional liability insurance for lawyers ) and legal advisers , tax advisors , architects and engineers , trustees and doctors, as well as interpreters / translators. Therefore, instead of professional liability insurance, one should actually speak of financial loss liability insurance in this context.
A public liability insurance can be both also finished alone in addition to a "real professional liability insurance". However, in contrast to professional liability insurance, business liability insurance only makes sense to protect a company. It insures the company against financial losses caused by personal injury or property damage. In addition, damage caused by the sole fault of an individual employee is also covered. A business liability insurance therefore offers financial protection against personal injury and property damage as well as against financial loss (e.g. loss of income).
Federal Lawyers' Act § 51 Professional Liability Insurance
As part of professional indemnity insurance, there are certain minimum requirements that private insurance companies must meet. Insurance cover is only considered a prerequisite for admission if the insurance company meets the following insurance conditions:
- Insurance must settle financial losses in accordance with Section 278 or Section 831 of the Civil Code
- The insurance contract must also provide protection in the event of a breach of duty
- The minimum sum insured is 250,000 euros and can be limited to four times this amount within an insurance year
- Liability can always be excluded if there is a knowledgeable breach of duty
Overlaps in the insurance tariff conditions
In practice, the terms are often mixed up: In contrast to an extensive craft business, a single, self-employed craftsman might still want to refer to such insurance cover as professional liability insurance. In some cases the insurers do not even make a correct distinction themselves based on this problem. Business liability insurance often refers to itself in the insurance conditions as business and professional liability insurance.
Compared to property insurance, where you can often freely decide whether to take out, special professional groups are subject to compulsory insurance. Thus, a lawyer may not pursue his appointment without first having taken out professional liability insurance. It does not matter whether the job is carried out part-time or full-time.
source
- Sample conditions from GDV
- Insurance conditions