Insurance for the Self-Employed

Insurance for the Self-Employed

Insurance for the self-employed protects you from the financial risks of professional errors. With professional indemnity insurance from exali, the self-employed are fully covered. These are the advantages of professional indemnity insurance from exali:

  • Covered in the event of professional errors
  • Protection in the event of legal, personal and property damage
  • Consulting errors and missed deadlines are covered
  • Third-party cyber damage is insured
  • Worldwide insurance cover

Quick Facts about Insurance for the Self-Employed

Do the Self-Employed need Professional Indemnity Insurance?

Professional Indemnity Insurance is recommended for all self-employed people who work in a digital, creative or consulting capacity, but it is not compulsory. However, some professional groups (e.g. lawyers or tax advisors) are required to present Professional Indemnity Insurance. Since self-employed freelancers are usually liable with their personal assets, every self-employed person should take out Professional Indemnity Insurance. At exali, this is already available for low annual premiums with very comprehensive insurance cover.

What does Professional Indemnity Insurance cost for Self-Employed Persons?

It is not possible to determine the cost of Professional Indemnity Insurance for self-employed persons on a flat-rate basis, as it depends on a number of factors. For example, the industry in which you work and your previous year's turnover. An engineer pays slightly higher premiums than a graphic designer. Added to this are the additional modules you have selected, the amount of the excess and whether you are taking advantage of various discounts (start-up discount or term discount for a contract term of three years). At exali, you can calculate your individual insurance premium for most products online in just a few steps.

What Risks are covered by the Insurance?

Professional Indemnity Insurance for self-employed people not only covers personal injury and property damage like traditional business liability insurance, but also covers pure financial losses (financial losses incurred by third parties). In addition, you can customise the scope of insurance to suit your self-employed activity. To this end, there are optional add-on modules depending on the field of activity, such as data protection and cyber first-party cover or, for webshop insurance, optional product liability.

What does Professional Indemnity Insurance for Self-Employed Persons provide in the event of a Claim?

If a claim is made, the insurer first checks whether the claims against you are justified and whether the amounts involved are reasonable. Excessive demands are adjusted and, if they were justified, paid by the insurer. Unjustified claims against you will be defended by the insurer, if necessary in court. This insurance benefit is also known as passive legal protection.

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  • Individual and comprehensive insurance protection
  • High coverage sums for financial losses
  • No-claims evidence going back five years

Why do Self-Employed People need Professional Indemnity Insurance?

Self-employed people have extensive obligations in projects and can be held liable by law and by contractual agreements for professional errors. As a self-employed person, you are liable with your private assets. In order not to endanger your financial existence, Professional Indemnity Insurance is essential for self-employed people. With Professional Indemnity Insurance from exali, you can protect yourself against unjustified claims for financial losses and, thanks to the included business liability insurance, for personal injury and property damage. This way, you are fully covered in your professional capacity and make your professional risks more predictable.

exali expert Tino Wiedemann
Tino Wiedemann
Expert and Head of Customer Care | exali AG

"Professional Indemnity Insurance protects self-employed people against professional risks such as financial losses, personal injury and property damage.
This makes it an essential insurance for self-employed people."

IT and Engineering
(e.g. programmer, software developer, system administrator)
IT and Engineering
Media and Creative
(e.g. media agencies, graphic designers)
Media and Creative
Consulting
(e.g. business consultants, data protection officers)
Consulting
Other Service Professions
(e.g. experts, accountants, virtual assistants and personal trainers)
Other Service Professions
Your Activity does not fit any Industry? Enter your Activity here and find Professional Indemnity Insurance for Self-Employed Persons
 
 
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What Risks are covered by Professional Indemnity Insurance for Self-Employed Persons?

Professional Indemnity Insurance for self-employed persons provides comprehensive cover for financial losses, personal injury and property damage that you cause to third parties (e.g. customers or clients) in the course of your business. Mistakes can happen despite all due care and can quickly lead to high damages. It is not only in the course of an active activity that self-employed people cause damage; consultancy services also frequently lead to claims if, for example, crucial information is not taken into account. These errors are of course insured, as are, for example:

  • violation of data protection laws (GDPR)
  • violations of rights
  • programming errors
  • consultancy errors
  • failure to meet deadlines
  • evaluation errors
  • instruction errors
  • analysis errors
  • calculation errors
  • data loss
What risks are self-employed people covered for in the professional indemnity insurance?

Not to be forgotten are the risks that arise from increasing digitalisation, which are also covered by exali. These include, for example, third-party cyber damage caused by cybercrime, viruses, malware and ransomware. This protection is particularly important if you, as a self-employed person, work on site with and on your customers' systems.

Frequently asked Questions about Insurance for the Self-Employed

What Risks are covered by Professional Indemnity Insurance for Self-Employed Persons?

  • Financial losses (e.g. legal violations, written warnings, missed deadlines, etc.)
  • Property damage (lost keys to rented premises, water damage in rented offices, property damage at customers' premises and at trade fairs, and on business trips)
  • Personal injury (e.g. in customer contact, on business trips or visits to trade fairs)
  • Cyber third-party liability (malware, data loss, hacker attacks, DDoS attacks)
  • Optional: third-party liability as a board member (e.g. as managing director of a limited liability company), cyber first-party losses, print first-party losses, withdrawal from the project contract
  • Certain first-party losses (e.g. loss of documents, fraud or false referral by own employees)

What does the Insurance cost for the Self-Employed?

All self-employed people work on a variety of different jobs, which is why professional liability should be calculated individually. Our exali online premium calculator provides you with all the information at a glance and shows you immediately how much your premium is. The relevant factors that influence the insurance premium are:

  • Field(s) of activity
  • Annual net turnover of the last 12 months
  • Whether you are a business founder or a start-up company
  • Selected sum insured for pecuniary loss liability
  • Selected sum insured for office and business liability
  • Selection of up to five optional additional modules
  • Contract period: one year or three years

Which Persons are covered by the Third-Party Liability Insurance for Self-Employed Persons?

The exali's liability insurance covers you and all employees of your business. These are the following persons:

  • Legal representatives of the policyholder,
  • managing and other salaried employees of the policyholder, marginally employed persons, honorary aides, apprentices, trainees and student trainees,
  • Employees of temporary employment agencies, self-employed employees (natural persons) integrated into the policyholder's company
  • insofar as they act in the name and on behalf of the policyholder, shareholders, limited partners, partners, supervisory and advisory board members (natural persons)

Insurance cover is also provided for third-party liability claims against the insured parties arising from the commissioning of external companies/subcontractors. The personal liability of external companies/subcontractors and their employees is not covered.

Insured parties are:

  • the policyholder, subsidiaries, branches and offices of the policyholder in countries of the European Economic Area (EEA),
  • Subsidiaries of the policyholder outside the EEA, provided that these are explicitly named in the insurance policy.

What Activities can Self-Employed People insure with exali?

At exali, the self-employed can insure themselves against occupational risks in the following areas:

  • IT
  • Media
  • Consulting
  • Professional Services

Thanks to the open professional coverage, all overlapping activities are also insured free of charge, provided they are not explicitly excluded in the insurance conditions. For example, you can work as an consultant and teach as a lecturer at the same time.

If you are unsure whether we can cover your activity, please feel free to contact the experts from exali customer care. We will provide you with comprehensive advice on all matters relating to the coverage of professional risks.

You can reach us from Monday to Friday from 9 a.m. to 6 p.m. at the following telephone number: +49 (0) 821 80 99 46-0. With exali, you won't end up in an anonymous call centre or stuck in an endless queue. At exali, you have personal points of contact. You can also write us an email at any time: info@exali.com

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