Professional liability insurance

Professional indemnity insurance protects your business or liberal profession against claims for damages from third parties arising from professional errors, negligence, wrongful acts or omissions. Particularly when your advice, expertise or services have a direct impact on clients, a single mistake can have significant financial consequences. Hillewaere Insurance supports you with personalised advice, tailored to your business and risk profile.

What is professional indemnity insurance?

Professional indemnity insurance, also known as ‘BA Beroep’, covers the liability that may arise when a third party suffers loss or damage as a result of an error in your professional services. Examples include incorrect advice, an error of judgement, negligence or the incomplete execution of an assignment.

For businesses and the liberal professions whose activities are primarily intellectual or advisory in nature, this is often recommended as part of a sound risk management plan. Do you practise a liberal profession? If so, take a look at Professional Liability Insurance for the liberal professions.

When is this insurance relevant?

Professional indemnity insurance is particularly relevant whenever clients, principals or other third parties rely on your expertise, analysis, advice or professional execution. The greater the impact of your work on their interests, the greater the risk of a claim in the event of an error or alleged error.

This applies, amongst others, to the liberal professions and specialist firms, such as consultants, architects, solicitors and other professional groups for whom professional responsibility is paramount. Furthermore, for certain regulated professions, professional indemnity insurance may be compulsory. Do you need legal support in the event of a claim? If so, consider taking out legal expenses insurance.

What can be covered?

The specific terms of a policy depend on your line of work, but at its core, Professional Liability Insurance is about protection against claims for damages arising from professional errors. This covers situations where a third party believes they have suffered loss or damage as a result of the way in which an assignment was carried out or advice was provided.

• Incorrect advice causing financial loss to a client
• Negligence or failure to perform a professional assignment
• Incorrect actions in the course of your profession or service provision
• Errors in expertise or judgement resulting in loss to a third party

The exact cover, conditions and scope vary from case to case. That is why a bespoke solution is more important than a standard policy.

Why Professional Indemnity Insurance is not the same as General Liability Insurance (GLI)

Many businesses require multiple liability insurance policies, as not every risk is of the same nature. Professional Indemnity Insurance specifically covers damage resulting from errors in your professional services or advice.

Anyone working with expertise, intellectual output or contractual assignments therefore often requires different protection than simply a General Business Liability Insurance (AVB) policy. A thorough analysis of your activities helps to avoid gaps in cover, for example in relation to Public Liability Insurance (BA Uitbating) and Post-Delivery Liability Insurance (BA Na Levering).

What determines the cost of professional indemnity insurance?

The premium for professional indemnity insurance does not depend on a single fixed formula. Insurers generally consider the type of activity, the risk level associated with your profession and the nature of the assignments you carry out.

The desired sum insured and the specific circumstances of your business or practice also play a part. As a result, the price of professional indemnity insurance can vary significantly from one case to another. Anyone wishing to compare professional indemnity insurance policies would be well advised to look not only at the premium, but also at the content and suitability of the cover within the broader context of liability insurance for businesses.

Personalised advice for businesses and the liberal professions

When it comes to professional indemnity insurance, a one-size-fits-all approach is rarely sufficient. The risks faced by an architect differ from those of a consultant, solicitor or other professional service provider. That is why Hillewaere Insurance works with you to identify which liability risks are relevant to your business and which solution best meets your needs.

This means you receive advice that is not based on a standard package, but on your profession, your responsibilities and your exposure to claims for damages. This is essential if you not only want to be insured, but also want to be certain that the chosen policy fits the reality of your practice or business. For business owners, Directors’ and Officers’ Liability insurance may also be relevant.

Frequently Asked Questions

What is professional indemnity insurance?

It is insurance that can cover your liability if a third party suffers loss or damage as a result of a professional error, negligence, incorrect action or omission in the course of your professional activity.

What does professional indemnity insurance cover?

Broadly speaking, it covers claims for damages arising from errors in advice, expert opinions or the provision of services. The exact cover always depends on the policy and the professional activity for which the insurance is taken out.

Is professional indemnity insurance compulsory?

For certain regulated professions, professional indemnity insurance may be compulsory. This applies, for example, in sectors where the law or ethical rules impose specific insurance requirements.