Professional Liability Insurance
A profession is considered to be a work activity requiring dedicated studies of a specific duration and work experience. Certain activities, such as therapeutic treatment, design, lawyer practice, notary services, accountancy, are riskier than others. Improper provision of these services may cause serious harm to end-users or third parties.
Persons engaged in the following professional activities must be covered by professional liability insurance: lawyers, bailiffs, auditors, insurance intermediaries, tour operators, notaries, building designers, and planners, building supervisors, health care institutions, property and business appraisers, etc. The list of all types of compulsory civil liability insurance is published by “Lietuvos bankas”.
The scope of insurance laid down in compulsory insurance is not always sufficient enough and therefore additional, voluntary professional liability insurance may be required to extend the scope of insurance.
the insured person has caused damage to the client of the provider of professional services, third persons due to an error, recklessness, negligence in the performance of the professional activity;
legal costs related to the claim and procedure for defence;
costs incurred to maintain reputation.
compensate for costs incurred by the plaintiff’s claim or action;
reduces the risk of loss of profit due to an interruption of business;
indemnify the third party for any involuntary omissions, negligence, error, etc. of the company’s employees that may occur in their professional activities.
persons providing consultancy services;
persons engaged in construction activities;
persons providing design services;
health care institutions;
transport and logistics service providers;
persons providing other services;
persons engaged in various manufacturing activities.