Indemnity Insurance (Professional insurance)
Business owners providing services sometimes insure their professional liability/ Indemnity Insurance (additionally acknowledged as “errors and omissions insurance”). This kind of liability coverage protects your business against misconduct, errors, and negligence in provision of services to your customers / client. Depending on your profession, you may be required by your client or a government to hold such a policy. For instance, physicians are obliged to procure malpractice insurance as a stipulation of practicing in most countries.
Average Indemnity Insurance cover € 500.000,-.
General liability insurance
Business owners obtain general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These policies safeguard against payments as the consequence of liability for causing bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required through an appeal procedure. This kind of insurance is not too expensive (relatively) and gives an important insurance cover.
Average insurance cover € 2.500.000,-. Most of the companies will start with an application. An application for an Indemnity Insurance is less common because those risk are primarily for special (financial risk) professions.
Directors liability. There are circumstances under which a managing director of a Dutch limited liability company may, however, be personally liable towards third parties on the grounds of tort. The question of personal liability of a director most often comes into play when creditors of the company are left unpaid. A managing director is liable if he has entered into an agreement on behalf of the company while he knew – or reasonable should have known – that the company would be unable to perform its obligations under the agreement and would not be able to provide recourse for the damages suffered as a result of that breach of contract.
Professions Indemnity Insurance
This insurance is required by law for some professions. Not for all professions. Yet there are many situations in which you do have to take out such insurance. For example, because a customer or client requests it. Or because the trade association you are affiliated with demands this. Professional organizations in particular often impose the obligation to take out professional liability insurance with regard to all their services.
Requierments Indemnity Insurance
The requirements that are then imposed on professional liability insurance are, just like the amounts to be insured, minimum requirements. This does not mean that satisfying these minimum requirements is sufficient in the specific situation of an office. A company will therefore have to consider whether it is sufficient to meet the minimum requirements.
Offers an applicationsDutch Business Insurances
The general liability form is also used if you want an offer for a idemnity insurance.
Beware aware of local differences between the Dutch and English indemnity insurance covers.