Does Professional Liability Insurance also apply to my professionals?

When you engage professionals for client assignments, it is important that they have appropriate insurance coverage. Many client agreements include specific insurance requirements that apply during the execution of the assignment.

The most common insurance policies are:

• Professional Liability Insurance (Professional Indemnity Insurance)
• Public Liability Insurance

Which insurance is required depends on the nature of the work and the agreements made with the client.

What is Professional Liability Insurance?

Professional Liability Insurance protects against financial losses resulting from a professional error made by a professional.

Examples include:

• incorrect or incomplete advice;
• design or calculation errors;
• incorrect implementations;
• programming errors;
• delays or additional costs caused by professional mistakes.

The resulting damage often consists of financial losses or additional costs that the client must incur to remedy the consequences of the error.

Depending on the profession, these claims can be substantial. For this reason, many clients require Professional Liability Insurance as a condition for doing business.

What is Public Liability Insurance?

Public Liability Insurance covers damage caused to third parties or their property during the performance of the work.

For example, when a professional:

• damages a client's equipment;
• causes bodily injury while carrying out the work;
• damages the property of a third party.

Where Professional Liability Insurance covers financial losses resulting from professional errors, Public Liability Insurance covers material damage and bodily injury.

How do the Partner Services support you?

Through the Partner Services, we can assist if your professional does not yet have appropriate insurance or if the existing cover does not meet the client's requirements.

Together, we will determine which insurance solution best matches your professional's activities and the contractual requirements of the client.

Unsure whether your professional has adequate insurance?

Please contact your Partner Manager.

Together, you can discuss which insurance policies are required and what solutions are available through the Partner Services. This allows you to engage professionals with confidence while meeting your clients' insurance and compliance requirements.