Professional Indemnity Insurance – FAQ

What does "Professional Indemnity” Errors & Omissions) Insurance mean?

Means coverage of claims against the Insured presented by its Employer or any Third Party for alleged negligence, error or omission in the frame of his professional activity. In fact, the practical meaning of this insurance is “provision of legal support and financial coverage for remuneration of claims that fall into the Civil Liability of the Insured Professional”. 


 

Who may be interested in it?

Every Professional (Natural or Legal Entity) providing services for a fee. 


 

Why is it necessary this insurance?

  • Any Professional assumes responsibilities that might lead to a damage/ financial loss. The respective remuneration for claims against him might be “very heavy (unbearable)” compared to his professional fee and his financial capacity.
  • The eventual errors or omissions are human weaknesses even for the most conscious - scrupulous professional.
  • Due to the evaluation of the economy and the society, transactional ethics change and every Professional can be accused, even maliciously for errors or omissions he has not made.
  • Current business conditions impose the Professional Indemnity Insurance not only as an element of safeguard but also as a proof of reliability, as the “guarantee” for the services provided.
  • Modern professionals (Natural Persons or Corporations) need legal & financial protection in order to be able to proceed unhindered to their activities, without any additional stress for eventual consequences due to their errors or omissions.

 

What does a Professional Indemnity Insurance Policy cover?

  • Legal protection by experienced Lawyer assigned by the Insurance Company for the advocacy of the interests of the Insured when he is accused for an eventual error or omission.
  • Financial remuneration for financial loss of the Insured’s Employer or of a Third Party in case of error or omission of the Insured.
  • Financial remuneration for Bodily Injuries or Death of any Third Party (valid for Engineers and Physicians)
  • Expenses and judicial costs related to claims for remuneration, which cannot be settled extrajudicially

 

What should we have in mind examining a Professional Indemnity Insurance Policy?

No abusive restrictions and exceptions should be included, such as:

  • No coverage of claims relevant to cases that have a high probability to occur!
  • No coverage of any consequential financial claims! (Note: Essentially, claims refer to a consequential financial loss!)
  • Explicit clause that the Policy remunerates only after a final and irrevocable judicial resolution! (Note: In consideration of such a clause, it is obvious that the Insured Party will have to wait certain years for the Insurance Company to cover him. In the meantime, the Insured will continue to be considered involved in judicial procedures and continue to pay premiums!)

 

Does a Professional Indemnity Insurance Policy pay after Courts resolution?

No. According to the international practice, a Professional Indemnity Policy, issued by a reliable Insurance Company, remunerates without appeal but following a legal and/or technical (if considered necessary) experts Audit.


 

What does the Professional Indemnity Insurance Policy offer to the Insured?

  • Substantial legal and financial coverage
  • Guarantee that an eventual financial loss to an Employer and/or Third Party by error or omission committed by the Insured, will be remunerated by the Insurance Company.
  • An excellent proof of quality and reliability of the services provided
  • An incentive for creation and business development, as through the sense of security such insurance provides, the Insured is encouraged to assume professional risks and initiatives

How to proceed for an Insurance Policy Form?

  • Filling of a standardized Insurance Application (respective to the professional activity)
  • Sending of the signed Application to Fax No:+302106847454 or to the e-mail: info@gkoutinas.gr
  • Determination of the minimum insurance premium by “KOUTINAS SA”
  • Issuance of the Lloyd’s Policy and mailing within 3 days