Professional Liability Insurance also called Professional Indemnity (PI) or known as Errors & Omissions (E&O) is a form of liability insurance that helps protect professional advice and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client and damages awarded in such a civil lawsuit.
The coverage focuses on financial loss to the client caused by, alleged failure to perform on the part of, and error or omission in the service sold by the policyholder to the client.
The above are not covered by a general liability insurance policy.
PI provides cover for defence costs but does not include criminal prosecution nor a wide range of potential liabilities under civil law.
Professional liability insurance is required by law for certain kinds of professional practice.
The professions required PI Insurance by law in Cyprus are as follows:
- Insurance Agent/Intermediaries
- Estate Agents
- Insolvency Agents
Our Professional & Management Liability product range includes:
- Professional Indemnity insurance protects your business against claims for loss or damage by a client or a third party if you have made mistakes or are found to have been negligent in some or all of the services that you provide for them. PI insurance will also cover legal costs. In some professions PI is a regulatory requirement. Ask for further information if you are in a field that requires it i.e. Architects, Engineers, Accountants, Auditors, Law firms and individual Professional Practitioners.
- Management Liability is parallel to the Professional Liability mentioned above though it deals with Executives not Professionals. Before a D&O policy is initiated the liquidity and solvency of the insured corporation and its directors are taken into consideration. Directors & Officers Liability policies require specialist knowledge which our team has.
- Medical Malpractice covers professional negligence by act or comission of a healthcare providerand although regulations vary from country to country medical professional need be required to buy coverage for professional indemnity. A physician’s deviation from the applicable standard of care that a similar physician would exercise under the same circumstances is something that had happened in the past therefore making this type of coverage fundamental.