Professional Indemnity Insurance: Who Is Insured?

Professional Indemnity Insurance That Covers Everyone In Business

Wherever work is done, mistakes happen. This also applies to freelancers and self-employed people who run their own business. But in contrast to salaried employees, professional mistakes can result in high claims for compensation, which in the worst case can endanger the entire company. You can protect yourself against this risk with Professional Indemnity Insurance. But what if it is not you who makes a mistake, but for example your employees or other managers?

With the Professional Indemnity Insurance policies through exali, the following persons or companies are automatically insured at no additional cost:

• Members of the management
• Employees
• Trainees, volunteers, interns, working students
• Freelancers, if they work in your name and on your behalf
• Volunteers and part-time employees
• Shareholders, limited partners, partners, supervisory board members and advisory board members (if they are carrying out an insured activity in your name and on your behalf)
• Employees of temporary employment agencies who are integrated into your company
• Subsidiaries, branches and offices in the country and in the European Economic Area (including Great Britain and Northern Ireland)

In addition, insurance cover is provided for the following persons and companies under certain conditions:

• Subcontractors: If you hire a subcontractor for a certain activity within the framework of a project, you will also be covered by insurance. If, as a result of such an assignment, liability claims are made against you because the subcontractor made a mistake and your clients hold you responsible, your Professional Indemnity Insurance protects you against expensive claims for compensation. However, the personal liability of the subcontractor is not insured. In addition, the insurer can take recourse against subcontractors after the claim has been settled.
• Joint Ventures and Consortiums: You are also insured if you participate in joint ventures and consortiums ( if they are operated in the European Economic Area, the United Kingdom or Northern Ireland (UK)), even if the claims are against the joint venture or consortium.
• Activities of the management outside the company: Members of the management are also insured if they carry out an insured activity in their own name outside the company.

By the way: Professional Indemnity insurance through exali also provides coverage for the loss of employees in so-called key positions (key man coverage). These employees usually have important know-how that cannot simply be replaced and plays an important role in the smooth running of the company. Among other things, the insurer covers the costs for headhunters to fill such an important position as quickly as possible and also assumes the additional personnel costs for up to six months.