Advantages of Professional Indemnity Insurance in Case of First-party Claims

In addition to liability claims from third parties – for example customers who suffer financial losses as a result of your professional activities – Professional Indemnity for Digital Professions can be extended to cover financial losses suffered by your own business. Depending on your individual needs, optional add-ons are available for First-Party Financial Loss Insurance (FPI), First-Party Cyber and Data Risks Insurance (FPC) and AI-Related First-Party Losses (ARL).

Damage Examples of First-party Claims

First-party Claims Arising from Alteration od Blocking of your Website

Your company website is altered or blocked as a result of unauthorised interference by a third party, for example through a hacker attack.

Insurance protection: If you have selected the optional First-Party Financial Loss Insurance (FPI), the insurer covers the necessary costs incurred to reverse the alteration or blocking of your website caused by unauthorised interference by a third party.

The indemnity limit is up to €300,000 per insured event and policy year.

Legal Protection in Criminal Cases

You are charged with a criminal offence in connection with a claim regarding infringements of data protection law.

Insurance protection: If criminal proceedings arise from a damage event that may result in liability damages covered by the policy, our Professional Indemnity Insurance for Digital Professions covers the necessary court and legal defence costs.

The indemnity limit is up to €300,000 per insured event and policy year.

Remuneration of Legal Protection

Your client clearly doesn’t want to pay the last instalment for a project. They justify this by alleging damages and deduct these from your outstanding invoice (so-called offsetting).

Insurance protection: Our Professional Indemnity Insurance for Digital Professions covers the statutory legal costs of enforcing your undisputed payment claim in court, provided that the requirements specified in the insurance terms and conditions are met.

Compensation is limited to €300.000 per insured event and policy year.

First-Party Losses Caused by Employee Errors

An employee accidentally transfers the same supplier invoice twice. The duplicate payment cannot be fully recovered and your company suffers a direct financial loss.

Insurance protection: If you have selected the optional First-Party Financial Loss Insurance (FPI), the insurer covers direct financial losses caused by certain errors made by insured persons in the course of their professional activities, including erroneous or duplicate transfers.

The indemnity limit is up to €300,000 per insured event and policy year.

First-Party Cyber and Data Losses Following a Cyber Attack

You host your own applications, including your website, on a server cluster. Hackers gain access through a security loophole. You notice this when you spot hacking tools in the Apache log files when you experience performance problems on the server.

Insurance protection: If you have selected the optional “First-Party Cyber and Data Risks Insurance (FPC)”, the insurer covers first-party losses resulting from unauthorised third-party interference. This includes, for example, reasonable and necessary costs for restoring affected IT systems, programs or data, as well as additional costs required to maintain business operations.

If personal data is affected, the insurance also covers necessary costs such as forensic investigations, identifying affected persons, legal advice regarding reporting and notification obligations, notifying affected persons and, where applicable, credit protection and credit monitoring services.

Depending on the sum selected, the indemnity limit is €50,000, €100,000 or €150,000 per insured event.

First-Party Losses Caused by AI Errors

An AI agent used in your business processes data incorrectly due to a malfunction and overwrites important project files. Your team has to restore the affected data, manually reprocess the files and temporarily switch to alternative workflows.

Insurance protection: If you have selected the optional AI-Related First-Party Losses (ARL) add-on, the insurer covers necessary additional costs resulting from AI-related errors or malfunctions. This includes, for example, costs for analysing and resolving the AI error, restoring or recreating affected data, additional personnel expenses and external experts or service providers.

The indemnity limit is €50,000 per insured event and policy year. The deductible is €1,000 per insured event.