Professional liability insurance provides insurance protection to the insured for claims for compensation of ordering parties of services that are the result of professional fault of the insured in performing the registered activity and for which the Insured is liable under the law.
Professional fault is a violation and / or derogation of the existing codes of practice, established standards or the established rules of attention, applicable to a particular profession for which insured shall be responsible in accordance with the applicable regulations.
Voluntary and compulsory professional liability insurance
According to the applicable laws of the Republic of Serbia professional liability insurance may be compulsory and voluntary,
The contract of professional liability insurance must conclude the following persons:
- founders of the insurance brokerage undertaking
- the company for brokerage in employment of sailors
- an audit company
- an active bankruptcy trustee
- public enforcement agents
- a intermediary in real estate transactions and rentals
- a company and/or other legal person or entrepreneur preparing and inspecting technical documents and/or performing works
- professional supervision or technical inspection
- a licensed professional administrator
- a licensed valuer.
Professional liability insurance – exclusion, teritorial validity, amount insured
Insurance companies in their general and special conditions stipulate cases where professional liability insurance shall be excluded. For example, the insurer has no obligation for claims for compensation:
- that under the contract exceed the scope of the obligations regulated by legislation on liability
- for damage that results in a personal injury or damage to the goods and for non-pecuniary damage
- if the insured person or other employees working for him cause professional fault intentionally or by gross negligence
- if the professional fault occurred at the time when the insured person or persons who working for him, did not have proper registration or license to carry out activities
- arising due to fraud, other crimes, force or threats
- arising due to the loss of data or documents (written, printed or electronically stored), which are entrusted to insured on storage
- arising due to defaulting in contracts of the ordering party of the services which are specified in the contract
- arising due to damage of the reputation or good name
- arising as a result of illiquidity or insolvency of the insured; and the like.
The insurer is liable only for those insured events, which occurred in the performing of registered activities of the insured in the Republic of Serbia and in the territory of other countries only if it is stipulated particularly or if it is provided by specific provisions.
The amount insured, which represents the upper limit of liability of the insurer per insured event, it is not unique. In some cases, professional liability insurance can not be contracted by the amount of the amount insured, which is less than the amount prescribed by law.
The minimum amount of amount insured is set out in the following cases:
- founders of the insurance brokerage undertaking (Article 89, paragraph 3, item 9 of the Insurance Law)
- the company for brokerage in employment of sailors (Article 67a, paragraph 1, item 5 of the Law on Maritime Navigation)
- an audit company (Article 18 of the Law on Auditing)
- an active bankruptcy trustee (Article 30, paragraph 1 of the Law on bankruptcy)
- public enforcement agents (Article 3 of the Rulebook on general requirements for entering into contracts on insuring public enforcement agents)
- a intermediary in real estate transactions and rentals (Article 13 of the Law on intermeditation in real estate transactions and rentals)
- a company and/or other legal person or entrepreneur preparing and inspecting technical documents and/or performing works, professional supervision or technical inspection (Article 6 of. Rules on the conditions of the professional liability insurance)
- a licensed professional administrator (Article 52, paragraph 12 of the Law on housing and bulding maintenance)
- a licensed valuer (Article 12, paragraph 4 of the Law on real estate valuers).
Compulsory insurance against liability »