Professional Indemnity Insurance
Freelancers, the self-employed and companies must expect high claims for compensation from customers or principals in the event of professional mistakes and mishaps. Alongside the claims for compensation, there are also high legal fees involved for the self-employed. In order not to endanger your private assets or the liquidity of the company through these claims, it is essential to take out professional indemnity insurance, or professional indemnity for short. It covers financial loss, property damage and personal injuries as well as possible consequential damages such as loss of turnover of your customers.
Since the professional risks differ considerably depending on the industry, exali.com offers tailor-made solutions for optimal professional indemnity insurance for freelancers, the self-employed and agencies. The insurance companies are specially designed for the new areas of activity related to digitisation, such as IT and telecommunications, creative and media professions as well as business consulting.
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Which Insurances does Professional Indemnity Insurance from exali.com Include?
Professional indemnity for freelancers and service providers combines in the basic coverage both insurance components of the financial loss liability and general liability insurance. You can choose different sums insured for both components in order to optimally cover the occupational risks.
To protect against the ever-increasing threat from cyber risks, we offer you the optional add-on module for First-party Cyber and Data Risks Insurance. This service extension takes over any first-party damage in the event of hacking, a DDoS attack, computer misuse, theft of data carriers and other data breaches.
You can use the online plan and premium calculator to see at any time which modules you need and which sum insured you can choose.
Some add-on modules expand the scope of insurance to include so-called first-party claims or a first-party claims insurance. This is damage that is not inflicted on a third party (customer or principal), but damage that you suffer yourself. For example, in the case of data protection or cyber damage.
Since every professional sector has individual requirements, insurances must also be tailored to these needs. The exali.com experts will be happy to advise you on the possible insurance modules and will be happy to work with you to determine the best professional indemnity insurance for your business. Take advantage of our customer service employees with over 15 years of experience.
What Does Professional Indemnity Insurance Cover?
Our professional indemnity insurance covers your legal and court attendance expenses for defending a claim as well as any compensation or costs that may be awarded as a result:
- Professional negligence - e.g. a mistake in performing a job for a customer or poor consultation including service delays
- Unintentional violation of trademark and copyright laws - e.g. using an image on your website without permission
- Violations of the EU General Data Protection Regulation
- Breach of confidentiality - e.g. passing on sensitive customer information without permission
- Loss of your customer’s documents or data
- First-party cyber damage, provided you have selected the ‘First Party Cyber Insurance (FPC)’ Add-on
- and much more...
General liability insurance essentially insures personal injuries and property damage as well as consequential losses due to a business or professional activity. It concerns the safeguarding of an entire company. This includes damages that can occur as a result of operational activities. The following, among others, are insured:
- Personal injuries and property damage due to faulty service provision
- Damages on business trips, at trade fairs, exhibitions and events (worldwide)
- Damage to rented office space or event rooms (rental property damage)
- Damage in the organisation and execution of seminars or training courses
- Damage caused by the professional operation of aerial drones up to 5 kilograms (including camera)
- Product liability damage (guaranteed properties)
- Loss of customer keys and code cards
In contrast, professional indemnity is to be understood as an overarching term. It can include financial loss liability to cover pure financial losses and general liability to cover personal injuries and property damage. Additional add-ons such as the First-party Claims Insurance can supplement the scope of professional indemnity insurance.
If you take out Professional Indemnity Insurance for Digital Professions via exali.com, all relevant insurance modules for the respective industry are included in one package!
Every professional indemnity insurance can be individually calculated at exali.com using the real-time calculator on the website with just a few clicks. The following factors are essentially decisive for the costs of professional indemnity:
- Insured area of activity
- Annual net sales over the last 12 months
- Are you a business founder or a startup company
- Selected sum insured for the financial loss liability
- Selection of and amount of the sum insured or general liability
- Selection of the add-on module
- Contract term 1 year or 3 years
Sample Calculation of the Total Premium Amount
For an IT expert as a business founder, the annual net insurance premium in the smallest version starts at around 283 euros per year. (Specifications: Sum insured for financial losses = 250.000 euros, sum insured for personal injuries and property damage = lump sum of 2 million euros, deductible = 250 euros per insured event, contract term = 3 years).
Note: The legal company name and form (freelancer, self-employed, company, LP or SE) does not affect the insurance premium.
What Advantages does Professional Indemnity Insurance Have in a Damage Event?
Professional indemnity very comprehensively covers financial losses as well as personal injuries and property damage that you inflict on third parties (e.g. customers or principals) in your business. The insurer also takes on a reviewing function to determine whether the alleged claims are justified. If this is not the case, the insurer will also cover the costs for defending against unjustified or exaggerated claims (e.g. lawyer, expert and court attendance expenses).
In these cases, professional indemnity insurance works like legal expenses insurance. This is why it is also called ‘passive legal protection’ in the context of professional indemnity.
There are many possible causes for claims and damage events. Human mistakes, unforeseen circumstances and the unfortunate chaining of several events are often the starting point for an expensive damage event.
In this context, damage events do not only arise during active work as damages are also often caused through consulting, for example when critical information is not taken into account. These errors are of course insured, just like, for example:
- general consulting mistakes
- missing a deadline
- programming error
- infringements of rights
- evaluation errors
- instruction errors
- analysis errors
- calculation errors
- measurement error