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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The Professional Indemnity Insurance for Digital Professions from exali.com is specifically engineered to suit the professional risks that occur in the areas of IT and telecommunication. To ensure that you only insure what you really need, we provide a modular product consisting of a basic protection add-on for first party cyber risks.
Professional Indemnity from exali.com offers very comprehensive protection in the event of errors in advice as a freelance or independent consultant, advisor or trainer. So that you only insure what you really need, there is the optional add-on FPC module for basic protection.
exali.com Professional Indemnity Insurance offers many self-employed people in the service industry comprehensive protection for compensation of damage. The real-time calculator on our website helps you to put the best insurance coverage for your activities together. To ensure that you only insure what you really need, we provide a modular product consisting of your ideal basic protection as well as an add-on for first party cyber risks.
Professional indemnity insurance (also known as PII) or professional liability insurance will protect you if you make a mistake while working for a principal that causes them financial loss. Examples of this are incorrect advice, faulty services or copyrighted designs.
These mistakes can cost the customer time and money, and they can choose to take legal action against you to recover these costs. Professional indemnity insurance covers the cost of your defence as well as any compensation your client may be entitled to, due to your mistake.
Even if you haven't done anything wrong and a customer makes an unfounded or unjustified claim against you, defending against this can cost significant amounts of money. Professional indemnity insurance can protect you in these scenarios.
Indemnity Insurance Seal for your Principals
- Individual and comprehensive insurance protection
- High coverage sums for financial losses
- No-claims evidence going back five years
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...
What is the Difference Between Professional Indemnity Insurance and General Liability Insurance?
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!
What are the Costs of Professional Indemnity Insurance?
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
Frequently Asked Questions about Professional Indemnity Insurance
Professional Indemnity Insurance - What to Look Out for?
What Type of Damage is not Insured?
What Should be Insured in a Professional Indemnity Insurance?
How Much is the Sum Insured /Covered of the Liability Insurance?
What Should be Considered when Terminating a Professional Indemnity Insurance?
exali.com Professional Indemnity Insurance
Professional Indemnity Insurance for Digital Professions from exali.com is optimally tailored to the daily changing requirements of the self-employed and freelancers. exali customers benefit from our more than 15 years of experience in insuring and handling claims of IT companies, consultants and freelance professions such as graphic designers or journalists. Thanks to the online calculator, you can take out professional indemnity insurance in under 5 minutes and it is completely paperless.
You can get all the information you need directly from the real-time calculator. Frequent questions are answered transparently before the conclusion. After signing the contract you will find all contract information in your ‘My exali’ customer area. There you can adjust current contracts at any time if new professional fields or business areas are added or the insured sum has to be increased for a large project.
Your advantages at a glance:
- Quick and easy online conclusion
- Insurance protection that is perfectly tailored to your risks
- Immediate insurance confirmation
- Exciting specialist articles about protecting your business
- Competent advice from our customer advisors
After taking out the insurance, you will receive the exali.com Liability Seal that you can embed into your website. This way you can show potential principals that a professional contact person will take care of handling any potential damage event. Clicking on the seal redirects you to your personal insurance confirmation site on exali.com, where potential principals can find out about the sums insured you have chosen.
Any questions? The exali.com customer advisors will be happy to assist you personally - without waiting times or call centres.