Professional liability is specifically designed
to protect the assets of professionals who may cause damage to third parties in the course of their professional activities.
No one is exempt from making a mistake or overlooking a detail, whether by action or omission; it is therefore essential for a professional services company to have professional liability insurance tailored to its activity.
Protection is optimal when this insurance is complemented by general liability insurance, which also includes employer’s liability, civil liability and product liability.
Professional liability is aimed at:
- Technology and science
– Covers the entire legal field (lawyers, notaries, etc.), as well as tax, labour and accounting advice
- Management consultancy:
– Quality, HR, training, management and strategy consulting
- Technical professions:
– IT consulting, software development, hardware installation and maintenance, hosting
- Other professions:
– Media, marketing, call centre and real estate agent
Tailored to your needs
What coverages does professional liability insurance provide?
- Professional Liability
- Protects the insured person’s assets against claims for damages from third parties arising in the exercise of the insured person’s professional activity.
- Liability for the exercise of business activity
- Covers damage to third parties caused by the business structure in the exercise of its own activities.
- Employer’s liability
- The payment of the compensation claimed from the insured person by the workers as civilly liable for the damage suffered by the workers as a consequence of accidents at work.
- Computer records
- Covers the costs of repair, replacement or reconstruction of lost or damaged computer records of a client that are in the possession of the insured person.
- Breach of the Personal Data Protection Act (LOPD).
- Protects against claims for professional errors and omissions causing damage to third parties.
- Advertising expenses
- The insurance covers the expenses derived from the commissioning of publicity to mitigate the damage to the insured’s reputation as a consequence of a claim.
- Embezzlement of employee funds
- Protects the insured against claims resulting from an intentional act of an employee with the intent to cause a loss.
- Tenants’ liability
- Protects the insured against a claim by the owner of the premises for damage caused by water, fire or explosion on the premises while the insured is renting the premises.
- Damage to documents
- Liability for damage to documents and files is covered: material damage, loss or misplacement of files or documents that may be in the possession of the insured person for the development of the entrusted management.
- Intellectual Property
- Protects the insured against claims from third parties as a direct consequence of an unintentional professional error related to a copyright, trademark or other intellectual property right.
- Libel or Slander
- Protects the insured against claims for compensation for primary pecuniary damage caused to a third party by defamation or slander, unintentionally injuring their honour, dignity or reputation in the exercise of their profession.
- Professional prohibition
- The insurance covers the compensation of the insured person in the event of incapacity for work as a consequence of a final judicial sentence.
- Compensation after termination of the employment relationship
- Claims for compensation for damages that may be caused by work carried out within the framework of the business activity (once the work has been completed).
- Claims received during the period of validity of the policy are covered, even if the event occurred before the policy was taken out.
Frequently asked questions
As a member, I am covered by my professional association’s insurance. Why do I need another insurance policy?
Certainly, your professional association’s policy does its job very well. However, as a group insurance policy, the limits and lump sums may not cover all possible claims you could face.
Sometimes these policies even limit the total amount the insurer will pay to the number of claims they handle. If your claim comes in after this limit has been exceeded, you may no longer be protected.
What is the difference between professional indemnity insurance and a D&O policy?
Professional indemnity insurance protects the insured against claims for damages caused in the course of their professional activity.
The D&O policy protects you against claims for damages arising in connection with your position as an officer or director in the company.
Do you have any questions? Bohemia Mallorca always offers unparalleled customer service, even on Sundays by special request. Be it advice on new products, optimisation of existing policies or the settlement of a claim.
Professional liability for technology and science
What is professional liability insurance in the field of IT and technology?
In the provision of services, mistakes are inevitable. Neither the most qualified professionals nor companies with overloaded protocols are immune to mistakes, which can sometimes have serious consequences for clients, employees, suppliers, etc.
In this sense, a lawsuit against a company, whether due to a mistake or deliberate misconduct, can jeopardise its assets and those of its managers. This is why the self-employed and companies must protect themselves.
IT and technology professional liability protects the assets of professionals working in the following areas:
- IT consultancy
- Provision of personnel, training and other IT services
- Software development, installation and maintenance
- Sale, installation and maintenance of hardware and software
- Web design and other Internet services
- Sale, management and registration of domains
- Software defects
Defective development of traffic management software causing accidents and material damage.
- Damage to files
Accidental deletion of a company’s accounts stored on a computer consultant’s server.
- Inadequate maintenance
Inadequate maintenance of production line control software leading to interruption of production.
- Penalty or fine
The theft of data from an e-commerce server leads to a sanction by the data protection authority.
Professional liability in commercial law
What is professional liability insurance in the field of commercial law?
It is obvious that any professional activity involves risks.
The activities of these companies and professionals are subject to legal regulations. In most cases, their task is to advise their clients in order to optimise their finances or to comply with legal regulations in the course of their activities. They are usually highly qualified professionals who are constantly updating their knowledge. However, regulations change and no profession is immune to mistakes.
A mistake in their work can cause serious damage, which will undoubtedly give rise to claims that may jeopardise the assets of the company or the professional.
Professional liability insurance protects you against claims from third parties who have been harmed as a result of an error or negligence in your professional activities. That is to say, the insurer covers the damages occurred during the validity of the policy, even if the causal event occurred before the policy was taken out.
What could happen?
The work of business law professionals is not exempt from risks and errors, of which these are the most common:
- Errors in tax returns and administration.
- Errors in social security management.
- Late submission of applications
- Incorrect processing of subsidies
- Expiration and expiry of deadlines
- Procedural errors
Some specific examples of complaints are:
Errors in advice
Incorrect advice means that a company’s articles of association do not allow it to carry on its business, resulting in serious damage.
Embezzlement of employee funds
A disgruntled employee leaks confidential client information, giving a competitor a significant advantage.
Errors in tax returns
Incomplete filing of a tax return prevents a company from benefiting from a tax exemption. Claiming the uncollected amount and interest.
Loss of documents
Loss of documents enabling a company to apply for subsidies. The company claims damages.
Who is the professional liability insurance for commercial law aimed at?
- Property administrators
- API – real estate experts
- Tax, accounting and labour law advisors
- Administrative managers
- Dispute mediators
- Bankruptcy trustee
Professional liability for consultancy firms
What is professional liability insurance for consultancy firms?
In the provision of services, mistakes are inevitable.
No professional is immune to mistakes, which can sometimes have serious consequences for clients, employees, suppliers… The consequences are sometimes dramatic, as a lawsuit against a company can jeopardise its assets and those of its managers.
The service that advisors provide to their clients is essential. In many cases, they are entrusted with the task of bringing about major changes in companies. Their clients expect them to provide the best and most accurate advice.
Experience in insuring consultancy firms and advisors confirms that, despite their extensive knowledge of certain topics, they can make mistakes that cause serious economic damage. In this case, the dissatisfied client is likely to file a claim for negligence.
The purpose of professional liability insurance is to protect the insured against claims from third parties in the course of his or her professional activity.
Who is professional liability insurance for consultancy firms aimed at?
Companies specialising in consultancy. They can also be companies with a particular focus:
- Human resources
- Management and strategy
Professional liability for the technical professions
What is professional liability insurance for the technical professions?
Technical professionals work according to rules that are closely adapted to certain requirements specific to each professional field. The slightest deviation from these requirements can lead to errors that can cause serious damage to their clients.
Who is the liability insurance for technical professions aimed at?
This policy is specifically aimed at all professionals in the technical professions, focusing on the following areas:
- Public works
- Road construction
Professional liability for various professions
No professional is immune from mistakes. Sometimes, these mistakes can cause serious damage to clients, employees, suppliers, etc. The consequences are sometimes dramatic, as a lawsuit against a professional can jeopardise his or her family assets.
This is why self-employed persons and companies must protect themselves.
Who is professional liability insurance for the various professions aimed at?
The range of professional liability insurance covers a wide range of risks for the self-employed, SMEs and large companies as well as corporations. At Bohemia Mallorca we are at your disposal to inform you about protection for your professional activity, even if it is not one of the following:
- Real estate agent of industrial property
- Detectives and criminologists
- Commercial agents
- Quality control laboratories
- Advertising and marketing agencies
- Telemarketing companies
- Police and civil guards
- Risk prevention
- Municipal and judicial secretaries
Bohemia Mallorca trusts in the products of all well-known insurance companies in Spain. So you will always find the product that best suits your needs and benefit from our unparalleled customer service.