Professional indemnity insurance

Definición

Professional indemnity insurance (in the Netherlands the BAV) covers liability for purely financial loss that a professional causes to clients through errors, omissions or negligent advice. It is essential for advisory professions such as lawyers, accountants, consultants and engineers, where mistakes tend to cause financial rather than physical harm. It complements general liability insurance, which excludes such advisory errors.

Ejemplo

An accountant's professional indemnity insurer covers a client's loss after a filing error triggered an avoidable tax penalty.

Por qué es un riesgo para la empresa

Professionals without adequate BAV cover can face claims that run into multiples of their annual fees from a single error, particularly in sectors where financial advice directly influences major client decisions. A contractual obligation to maintain professional indemnity insurance that is left unverified can give a client a false sense of protection if the policy has lapsed or its limit is insufficient. The claims-made structure of most BAV policies means that cover must still be in force when the claim is made, not just when the error occurred.

Cómo gestionarlo

• Maintain BAV cover continuously and check at each renewal that the policy limit reflects the scale of engagements and the potential financial loss to clients.
• When contracting with a professional service provider, require them to provide a certificate of professional indemnity insurance and to notify you if it lapses.
• Understand the claims-made basis of your policy: if you retire or change insurers, arrange run-off cover so past work remains protected.
• Check whether sector-specific regulation (for example for accountants, lawyers or financial advisers) mandates minimum cover levels or approved policy wordings.

Referencias legales

• BW 7:925 Dutch Civil Code: insurance contract Derecho neerlandés

Salvo indicación en contrario, las referencias remiten al derecho neerlandés (Burgerlijk Wetboek, el Código Civil neerlandés); los instrumentos de la UE como el RGPD se aplican en toda la UE. Se trata de información general, no de asesoramiento legal. Otras jurisdicciones tratan estos conceptos de forma distinta. Verifique el texto vigente y su situación con un abogado cualificado.