A Real-Life exali Damage Event: Forgotten Confirmation Causes 4.000 Euros Damage
Window Replacement With Professional Support
In order to make their semi-detached house more energy-efficient, a couple wanted to replace the windows of their home and finance the project through a funding from KfW in addition to their own funds. In order to meet all requirements, the two secured professional support in the form of an energy consultant for private households at the end of 2020. The consultant was supposed to apply for funding for window replacement using his professional expertise.
No Funding Without Proof
Specifically, the couples project concerned the individual measure KFW430 with a grant of 20 percent of the costs - provided that the applicants adhere to all the required parameters. In fact, the hired energy consultant also ensured, as agreed, that all measures were carried out properly. Unfortunately, however, he forgot to upload an important document at the end - the so-called “Confirmation of Application” (BzA) as proof to the Federal Office of Economics and Export Control (BAFA).
The problem: The funding programme for window replacement expired at KfW at the end of the year. After the failure was noticed, the energy consultant submitted the application including the BzA with the request for goodwill at the beginning of the following year. However, the agency was strict and denied this request a few weeks later. Good advice was literally expensive this time - the couple was of course anything but enthusiastic and demanded the money for the lost subsidy directly from the energy consultant.
Lost funding: A Real Financial Loss:
But how is such a damage due to the lost funding to be classified in terms of insurance and is such damage insurable at all? The present case is an instance of a real financial loss, because the failure of the energy consultant resulted in a purely financial damage for the homeowners. Fortunately, the energy consultant had taken out Professional Indemnitiy for Digital Professions through exali. This Professional Indemnitiy for Digital Professions already includes financial loss indemnity insurance for damages from inadequate advice in its basic coverage.
After the energy consultant reported the damage to us, we passed the case on to the insurer. They reimbursed the amount of damage after a detailed examination. The new windows cost a total of over 20.000 euros, but the actual damage caused by the lost funding amounted to 4.000 euros. After deducting the deductible stipulated in the insurance conditions, the insurer finally reimbursed the entire remaining amount of the claim.
On The Safe Side With The Professional Indemnitiy for Digital Professions
Standing between two fronts in advisory activities requires not only tact, but also a great deal of professional expertise. If, despite the best of intentions and with all due care, something goes wrong - be it a missed deadline, an analytical error or a mixed-up number - good protection is worth its weight in gold. With an Professional Indemnitiy for Digital Professions/ through exali, the insurer not only checks claims for compensation and defends against unjustified claims, but also bears the costs in the event of a justified request.
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