Financial Loss Liability Insurance

Financial loss liability insurance exali.com
 
  • Take out cover online in just five minutes – even for projects that have already started
  • Personal support – you decide when and how you want us to help
  • Worldwide cover – you decide where and for whom you work

Financial Loss Liability Insurance is essential protection for freelancers, self-employed professionals and companies providing (digital) services. A professional mistake can cause a client a financial loss and lead to substantial compensation claims that threaten your business finances.

With exali, Financial Loss Liability Insurance forms the core of Professional Indemnity Insurance for Digital Professions. It protects you against liability claims arising from your insured professional activities, including programming errors, incorrect advice and copyright infringement.

Since 2008, exali has specialised in Professional Indemnity Insurance for freelancers and businesses. Our customer consultants help you find cover that suits your work.
 

  • Modular insurance – choose the cover your business needs, when it needs it
  • Comprehensive protection – wherever your business takes you

Financial Loss Liability Insurance 

Financial loss liability insurance exali.com

 

Financial Loss Liability Insurance is essential protection for freelancers, self-employed professionals and companies providing (digital) services. A professional mistake can cause a client a financial loss and lead to substantial compensation claims that threaten your business finances.

With exali, Financial Loss Liability Insurance forms the core of Professional Indemnity Insurance for Digital Professions. It protects you against liability claims arising from your insured professional activities, including programming errors, incorrect advice and copyright infringement.

Since 2008, exali has specialised in Professional Indemnity Insurance for freelancers and businesses. Our customer consultants help you find cover that suits your work.

  • Take out cover online in just five minutes – even for projects that have already started
  • Personal support – you decide when and how you want us to help
  • Worldwide cover – you decide where and for whom you work
  • Modular insurance – choose the cover your business needs, when it needs it
  • Comprehensive protection – wherever your business takes you

Financial Loss Liability Insurance 

Financial loss liability insurance exali.com

 

Financial Loss Liability Insurance is essential protection for freelancers, self-employed professionals and companies providing (digital) services. A professional mistake can cause a client a financial loss and lead to substantial compensation claims that threaten your business finances.

With exali, Financial Loss Liability Insurance forms the core of Professional Indemnity Insurance for Digital Professions. It protects you against liability claims arising from your insured professional activities, including programming errors, incorrect advice and copyright infringement.

Since 2008, exali has specialised in Professional Indemnity Insurance for freelancers and businesses. Our customer consultants help you find cover that suits your work.

  • Take out cover online in just five minutes – even for projects that have already started
  • Personal support – you decide when and how you want us to help
  • Worldwide cover – you decide where and for whom you work
  • Modular insurance – choose the cover your business needs, when it needs it
  • Comprehensive protection – wherever your business takes you
 

A pure financial loss is a loss that directly costs money without resulting from personal injury or property damage. For digital service providers, professional mistakes can cause significant financial losses even when nobody is injured and no physical property is damaged. The following examples illustrate these risks:

Programming error
A programmer makes a coding error that puts a client’s online shop out of operation for three working days. The client loses € 17,000 in sales and claims this amount from the programmer as compensation.
 

Missed deadline
A business consultant submits a client’s grant application too late. As a result, the client loses a € 10,000 grant and claims this amount from the consultant as compensation.
 

Virus transmitted to a client’s system
A media agency works directly in a client’s intranet and negligently introduces a virus. The system has to be completely rebuilt over several weeks. The client claims the costs of rebuilding the systems, restoring backups, ongoing operating costs and lost sales from the agency. The compensation claimed totals € 87,000.  

Most Common Causes of Losses in Financial Loss Liability Insurance

Copyright infringement
An influencer unintentionally uses a song in a post without the required license. The rights holder sends a legal notice and demands compensation for copyright infringement and reimbursement of legal costs. The influencer’s own legal costs, the opposing party’s legal costs and the compensation together amount to € 4,300.
 

For digital professionals, protection against pure financial losses is clearly the top priority due to the likelihood of such losses occurring. Personal injury and property damage, on the other hand, are less common but often more costly. That is why exali recommends combining Financial Loss Liability Insurance with General Liability Insurance in one Professional Indemnity policy.

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Is Financial Loss Liability Insurance compulsory?

Freelancers, self-employed professionals and companies can be held liable for financial losses caused by their professional work. Whether Financial Loss Liability Insurance is legally required depends on your profession and the country in which you operate. Your clients may also require proof of insurance before awarding a contract.

Check the requirements that apply to your activity and whether your chosen cover meets them. Even where insurance is not compulsory, it makes sense to protect your business proactively: a single error in a digital project can lead to substantial financial claims.

How is Financial Loss Liability Insurance structured?

Financial Loss Liability Insurance protects you against third-party claims for pure financial losses caused by you or other insured persons while carrying out insured professional activities. These include your employees. It also covers liability claims against you arising from work performed by subcontractors. This means that, as a digital service provider, you are well-equipped to handle 88% of claims.

At exali, this protection forms the core of Professional Indemnity Insurance for Digital Professions. You can tailor your cover to your business by adding suitable modules, depending on your activity and the available options:

  • First-Party Financial Loss Insurance for specified financial losses suffered by your own business.
  • First-Party Cyber and Data Risks Insurance for specified cyber incidents affecting your business.
  • AI-Related First-Party Losses cover for specified losses affecting your own business through the use of AI.
  • The Engineering extension for eligible engineering activities.

These extensions apply when agreed in your policy and within their respective terms. Your policy specifies the selected modules, sums insured and deductibles.

If you meet clients in person, work at their premises or run your own office, personal injury and property damage are relevant risks too. Adding General Liability Insurance complements your Financial Loss Liability Insurance for these situations.

exali General Liability Insurance
 
Do you need help?
 
We call you back
 
info@exali.com
With the experience of over 25,000 customers, exali AG is your personal and competent partner in all matters relating to Professional Indemnity Insurance.
Please feel free to call or write to us.

How does Financial Loss Liability Insurance help you when a claim is made?

Financial Loss Liability Insurance helps when a third party demands compensation from you for an event within the scope of your cover. You do not have to be at fault for someone to make a claim: an allegation alone can mean you need to defend yourself.

The insurer examines the claim. If it is unjustified, the insurer defends you and pays the necessary defence costs under the policy. This is known as passive legal protection. If the claim is justified, the insurer pays the covered compensation up to the agreed limits and subject to the applicable deductible.

Financial Loss Liability Insurance therefore helps both when a professional mistake causes a loss and when you need to defend yourself against an unjustified claim. Our customer consultants support you with reporting the claim and communicating with the insurer.

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Frequently asked questions about Financial Loss Liability Insurance

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Insurance babble simply explained

Important technical terms from the insurance world from A to Z:
The glossary puts an end to insurance babble. Arranged according to the most important key words, the glossary provides definitions of terms, simple explanations and further information on the most common technical terms.

 
Do you need help?
 
We call you back
 
info@exali.com
With the experience of over 25,000 customers, exali AG is your personal and competent partner in all matters relating to Professional Indemnity Insurance.
Please feel free to call or write to us.