Professional Indemnity Insurance: Who Needs To Be Insured?
Anyone who is self-employed needs good coverage. While certain professions are required by law to take out Professional Indemnity Insurance, others have the choice. In this article, we look at the requirements and clarify why Professional Indemnity Insurance makes sense for everyone - whether it is mandatory or not.
The article is also available as a video:
Who Needs To Take Out Professional Indemnity Insurance?
Some professions are obliged to take out Professional Indemnity Insurance. In some cases, this rule is prescribed by law. Sometimes the professional association stipulates that its members must insure themselves against professional risks - otherwise they are not allowed to practise their profession in the first place. This applies to the following professions:
- Architects
- Engineers
- Lawyers
- Insurance intermediaries
- Doctors
Of course, this list is not conclusive. It is best to find out about the requirements for professional coverage before you start working.
What Applies To Other Professional Groups?
Even in industries where Professional Indemnity Insurance is not mandatory, the self-employed should think about the right coverage. This applies, among others, to...
...the IT sector,
...the media sector
...consulting and
...service providers in various areas (expert opinions, data protection, ...)
The risk of making a mistake in your day-to-day business is present everywhere. If you are held liable for this, it can lead to financial ruin without Professional Indemnity Insurance. Apart from the issue of liability, more and more clients are also demanding proof of Professional Indemnity Insurance as part of a project contract. With the right coverage, you are not only managing risk, but also gaining a competitive advantage. Our damage events show time and again how important it is to take out Professional Indemnity Insurance - whether it is mandatory or not.
Coverage Is Always Worthwhile
At exali, we generally recommend coverage for anyone who works as a freelancer or is self-employed. This way, you are protected should you ever be held liable for a professional error. You can find out what modern Professional Indemnity Insurance should cover on our website.
Vivien Gebhardt is an online editor at exali. She creates content on topics that are of interest to self-employed people, freelancers and entrepreneurs. Her specialties are risks in e-commerce, legal topics and claims that have happened to exali insured freelancers.
She has been a freelance copywriter herself since 2021 and therefore knows from experience what the target group is concerned about.
