Consumer compensation actions against businesses are on the rise. The reasons why every business needs professional third party liability insurance.
In recent years, both in Greece and much more abroad, consumer and customer claims against businesses and professionals are increasing.
The vigilance of consumers and customers, combined even with unnecessary or malicious actions for damages arising from the civil liability of the professional, make the insurance of professional liability necessary.
Compensation claims against a professional can be financially unbearable. Most of the times it is impossible to meet such costs on its own. The compensation an insurance company will be asked to pay can reach a few hundred thousand euros or even exceed 1 million euros.
The cost of insurance is not high and in no way can be considered prohibitive for a professional.
What does professional liability insurance cover and who does it concern?
Professional Civil Liability insurance covers losses (death, bodily harm and/or material damage) that will occur to the customers of a business or a freelancer due to errors or omissions during the professional activity.
Indicative professions that can be covered are:
- Doctors
- Nurses, midwives, physiotherapists
- Pharmacists
- Accountants, tax experts
- Lawyers
- Architects, contractors, civil engineers
- Tour Operators
- Plumbers, Electricians
- Hairdressers
No one is infallible
The insurance of professional liability is an objective presumption of reliability and guarantee of the services provided. The existence of such a contract does not mean any weakness or questioning of the competencies of a professional. On the contrary, it is the best evidence of professionalism, respect and prestige towards its customers.
Let’s also consider that in several professions, e.g. accountants, changes in legislation are so frequent that they must be monitored and implemented daily, that a small or big mistake is more likely to happen than in the past.
Summing up
All businesses and freelancers face the risk of harming customers and third parties in general every day.
Since no one is infallible, the existence of a Professional Civil Liability policy can be a valuable “ally” at a critical time.
Ask for a free session with a DFAdvisors consultant today to see how you can protect your business.
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