Professional Liability Insurance / Professional Indemnity

What Is Professional Indemnity Insurance?

Professional indemnity insurance (or: professional indemnity) is an insurance specifically for the professional risks of the self-employed and freelancers, for example IT experts, agencies, online shops, lawyers, tax consultants or doctors.

Professional indemnity insurance takes over when the self-employed or freelancers cause damage in the course of their professional activity (for example to a customer) and are held liable for it. Since the self-employed and freelancers, unlike employees, are subject to liability with their professional and private assets, professional indemnity insurance is particularly important for them. Some professional groups such as lawyers, tax consultants, architects, engineers, auditors and doctors are required to take out professional indemnity insurance.

What Does Professional Indemnity Cover?

In contrast to general liability insurance, which covers personal injury and property damage, professional indemnity covers pure financial losses, i.e. financial damage caused to someone else as a result of the self-employed person’s mistake.