Who should take out professional liability insurance?

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Professional civil liability insurance

There is a very simple way to prevent an error from ending your business or leading you to ruin: have a Professional Civil Liability Insurance that protects you against the damages that you may cause to third parties in the performance of your work.

What is civil liability?

Article 1,902 of the Civil Code indicates that civil liability is the obligation we have as citizens to repair the damage we cause to a third party. for something, we have done or failed to do, whenever we are guilty of it or it is the result of negligence.

This is a way to regulate the economic compensation system to repair damage caused to third parties.

What is professional liability insurance?

It is possible that while we carry out our professional activity we do something that ends up harming a third party. In these cases, we speak of professional civil liability. To deal with the consequences of economic claims or lawsuits for civil liability, professionals can hire professional Civil Liability Insurance.

Let’s say, for example, that during a repair an electrician commits negligence that ends up causing an electrical failure that leads to a fire in his client’s home. In this case, the person responsible for paying the compensation to the client would be the electrician.

To protect himself, the electrician can have Civil Liability Insurance for professionals that covers both personal and material damage, as well as the consequences caused by a professional in the exercise of his profession involuntarily. In this way, the insurer will assume the payment or repair of the damage caused by the insured to a third party, up to the limit indicated in the professional civil liability insurance policy.

Why is professional liability insurance useful?

Professional Civil Liability Insurance allows workers, freelancers, or business owners to be protected against what may happen, preventing them from having to respond with their assets if an accident occurs or if they make a mistake.

They are a very simple way to keep your business protected, in addition to serving as a guarantee for both workers and those who hire them.

Imagine the damage you can cause to a third party in the exercise of your profession. Having to face the payment of your compensation can be something so expensive that it could even bankrupt your business. That is why it is so important to have professional civil liability insurance that covers possible compensation and avoids financial problems.

Who should take out professional civil liability insurance?

Due to its great utility, any professional, regardless of the sector for which they work, should have Professional Civil Liability Insurance.

However, the law establishes that Professional Civil Liability Insurance is mandatory for certain professionals, including doctors, lawyers, architects, detectives, tax advisors, financial agents, and the owners of all those businesses open to the public (such as gyms, restaurants, travel agencies…). There are even municipal regulations that require the hiring of professional Civil Liability Insurance as a requirement to grant the license to open business premises.

In short, it is compulsory insurance for all those professionals who, due to the nature of the work they carry out, can make serious mistakes that lead to lawsuits or claims that are too expensive to be able to assume them personally. And highly recommended insurance for any professional who wants to protect their business and their personal assets.

What coverage does civil liability insurance usually include?

The coverage of each Professional Civil Liability Insurance will depend on each insurer, although the normal thing is that they all cover you against compensation in which the insured is guilty of committing faults or errors in the exercise of their activity, material damage to third parties, or injuries. or deaths caused to third parties.

In addition, these Insurances usually include coverage related to the Judicial Defense of the insured or legal expenses and costs or additional coverage that covers the self-employed or the business against theft, accidents, or fires on the premises.

By aamritri

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