Financial Loss Liability Insurance in Croatia

Financial loss liability insurance exali.com

The self-employed, freelancers and service providers in Croatia have one thing in common, regardless of whether they “only” advise on projects or also implement them: Even a small mistake in their business can have fatal financial consequences.

Taking out financial loss liability insurance is recommended – and in some cases mandatory – for many groups of professionals as a way of safeguarding their existence in the event of expensive claims for compensation from third parties. It is crucial that this type of professional indemnity insurance insures pure financial losses, whereby the amount of coverage or the sum insured can be selected individually when taking out the policy online. Financial losses are by far one of the most common types of damage in Croatia in the digital age. exali.com specialises in financial loss liability insurance for consultants, IT and engineering service providers, creative and media agencies, and many other service professions for over 15 years.

 

 

What is Financial Loss Liability Insurance in Croatia?

Financial loss liability covers all individuals and companies who may cause financial or immaterial damage to a third party (e.g. customer or client) in the course of their professional activity. Freelancers, the self-employed and companies are often affected due to consulting, planning or programming errors, violations of rights and project delays. In private liability insurance, professional financial losses are generally excluded. Private liability, as the name suggests, only insures private individuals. Damage caused while carrying out a profession or trade is therefore not insured. With professional indemnity insurance from exali.com, financial loss liability is automatically included as basic protection. For comprehensive coverage, our basic protection also includes general liability insurance, which additionally insures personal injuries and property damage.

What is a Pure Financial Loss?

Real or pure financial losses, as they are known in technical jargon, are losses that cause financial disadvantages for customers or other third parties and are not a result of property damage or personal injury. That’s why pure financial losses are also sometimes referred to as immaterial damage. Financial losses typically arise from consulting or programming errors, system failures, delays in the project and so on.

Examples of Pure Financial Losses Include:

  • an incorrect assessment by a business consultant
  • a programming bug that destroys a database
  • costs for written warnings from a competitor
  • cyber attacks that leads to IT costs
Pure financial losses
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IT and Engineering
(e.g. programmer, software developer, system administrator)
IT and Engineering
Media and Creative
(e.g. media agencies, graphic designers)
Media and Creative
Consulting
(e.g. business consultants, data protection officers)
Consulting
Other Service Professions
(e.g. experts, accountants, virtual assistants and personal trainers)
Other Service Professions

What Are the Benefits Included in exali.com’s Financial Loss Liability Insurance?

Benefits of financial loss liability insurance

Financial loss liability insurance from exali includes financial loss liability insurance for all professionals to cover financial loss, and also General Liability Insurance (GLI) to cover personal injuries and property damage.

Financial loss liability insurance also includes additional benefits for certain first-party claims in the basic protection package. Financial loss liability insurance also takes care of examining claims from third parties (e.g. customers or clients), defending you against unfounded claims (in insurance jargon = passive legal expenses insurance) and paying out justified claims (up to the amount of your insured sum). Since every industry has individual requirements, your financial loss liability insurance can be expanded to include specific components. The experts on our exali customer service team will be more than happy to offer you comprehensive advice on the services and modules relevant to you personally.

Quick Facts on Financial Loss Liability in Croatia

Financial Loss Liability Insurance – Who’s It For?

In the digital business such as the IT, media and consulting industry, even small mistakes can cause major financial loss to a third party (e.g. your customer or client). While financial loss liability insurance is not required by law (mandatory insurance) for every industry, it is one of the most important forms of insurance for freelancers, the self-employed and business owners. Indemnity insurance for financial loss insures the liability risks of the respective professional group, thereby safeguarding your company or your livelihood as a freelancer.

Protection Against Professional Mistakes

In today’s complex work world of digitalisation and AI, professional mishaps happen quickly. Even small mistakes in the digital world can have devastating effects that cause extensive damage. You are often liable to a greater extent than you suspect. In the worst-case scenario, you have to use your private assets to cover these claims. The liability arises mainly from legal regulations (e.g. law of obligation or data protection laws) and from contractual regulations such as your project contract.

Protection in Case of Financial Loss

At exali financial loss liability is part of our basic protection, meaning that real/pure financial loss is covered. Real or pure financial loss means purely financial damage that are not a result of personal injury or property damage. The causes of real financial loss ranges from consulting, programming and planning errors, to project delays and violation of rights. According to an internal study by exali, financial loss accounts for up to 93% of all reported damage events across industries – so getting insurance for this is particularly vital.

Deductible/Excess

Your deductible also called “excess”) for financial loss liabilitydepends on the sector being insured. On average, the deductible for financial loss is 250 euros per damage event. The optional First-Party Data- and Cyber-Insurance offered by exali has a different deductible. You will find all deductibles clearly stated in the section”Insurance Details” on the exali.com website.

 
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How Much Does Financial Loss Liability Insurance Cost?

You can calculate your individual premium for financial loss liability in just a few clicks directly on our website using the online premium calculator.

Key Factors for the cost of Financial Loss Liability:

  • Area or areas of professional activities
  • Annual net turnover for the last 12 months
  • Whether you are a business founder or start-up
  • Selected insured sum
  • Selected add-ons
  • Term of contract (one or three years)

Note: The legal form of your business (freelancer, self-employed, company, partnership or corporation) is irrelevant with respect to the insurance premium.

Sample Calculations for Financial Loss Indemnity:

  • An IT-Freelancer founding a start-up: starting at 133,10 euros per year, plus insurance tax (IPT) (Annual net turnover: under 10.000 euros; sum insured for financial loss: 100.000 euros; discounts for start-up and 3 year contract term)
  • A Business Consultant working for large international companies: 837,90 euros plus insurance tax (IPT) (Annual net turnover: 500.000 euros; sum insured for financial loss: 3 million euro; no discount for start-up but 3 year contract term discount)

Note: To complete your insurance coverage, we highly recommend adding general liability to your policy. You should also consider adding our First-Party Cyber and Data Risk Insurance (FPC) to insure your business against serious cyber risks.

What Does Financial Loss Liability Cover?

Indemnity insurance for financial losses covers general professional mistakes, mishaps and violations in which freelancers, the self-employed and companies cause financial damage to a customer or other third party.

Certain important first-party claims are also insured. We understand a first-party claim as damage that you yourself suffer. For example, costs that arise from damage to your own website or a financial loss you suffer due to a cyber attack.

Examples of Mishaps and Mistakes Include:

  • programming error
  • layout errors
  • bad advice
  • data loss
  • infringements of rights
  • incorrect reports
  • missed deadlines

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Frequent Questions About Financial Loss Liability Insurance in Croatia

Financial Loss Liability Insurance from exali.com in Croatia

Thanks to years of experience in the area of financial loss liability insurance and direct contact with our customers, we at exali.com know that comprehensive insurance for job profiles like freelance photographers, web designers, IT freelancers, SEO experts or consultants from Croatia requires more than just industry-specific insurance solutions. You also need our know-how when it comes to new business risks and challenges. If you have questions, we won’t send you through a call centre. We’ll put you in touch with our insurance experts directly. As an expert portal and insurance broker, we put our know-how to good use free of charge to benefit you. That’s why you will find informative articles on business topics, new laws and real claims in our News & Stories area on the website, which will give you a direct insight into our insurance practice.

With exali.com, your personal services include:

  • Personal support from advice to guidance trough damage events
  • Online application – quick and easy
  • Immediate insurance protection, the moment the application is completed
  • Helpful background information on the risks involved in your specific activity

About exali

About exali

exali: My business. My insurance.

exali AG is the digital pioneer in the field of Professional Indemnity risks. We offer customised insurance solutions for freelancers, self-employed and companies since 2008. exali focuses on the digital sector and insures professional risks for IT and engineering experts, creative minds, media professionals, consultants and e-commerce providers.

With our highly specialised customer service, we stand by the side of more than 17,000 customers in 28 countries all over Europe - with individual support from taking out the insurance to claims settlement.