Insured losses
Basic coverage of professional indemnity insurance includes not only justified claims for loss events arising from damage and consequential damage to persons and property, but also real economic loss. The insurer also assumes the cost of defense for excessive or unjustified claims.
Economic loss: Loss of revenue, bad investments, or a financial disadvantage through misinformation are among the typical economic losses caused to third parties that are covered exclusively by professional indemnity insurance.
Insured risks
Occupational and operational risk: If an engineer makes wrong calculations, or an attorney misses an important deadline, if documents are lost, files not studied attentively, or a process is conducted in error -- these situations are all considered to be risks specific to operational processes as well as activity and omissions that are covered for insureds of professional indemnity insurance.
Premises and environmental risk: As with commercial third-party liability insurance, risks from the ownership of property, buildings, or facilities as well as environmental hazards from facility, operational, or professional risks, are also insured.
Not insured
- Claims of the policyholder or from other persons in the same household
- Damages caused intentionally or which were to be expected with high probability
- Similarly, all claims in connection with the activity of an insured person as a member of the executive management or board of directors are not included (but can be covered, however, with directors' and officers' liability insurance)
