Professional liability insurance allows any association, company or self-employed person to be covered for the damage he or she may cause to others during the execution of a job. Still, even if one is usually advised to take out this cover, it is not always compulsory. The question remains as to which occupations are covered by the duty to take out professional liability insurance.
What exactly is liability insurance?
Civil liability insurance is the coverage that covers the various damages, errors, prejudices or mistakes committed during professional activity. It may be optional or compulsory, depending on the profession. It should be noted that comprehensive professional insurance does not offer the same guarantees as professional liability insurance. It is therefore strongly recommended that you take out a contract covering any damage you may cause to your suppliers, customers, third parties or employees. In the absence of civil liability, you could be at risk of having to pay the number of damages and interest. In addition, a certificate of professional liability insurance is often required in tender documents to prevent possible damage arising from your activity if your application is successful.
What exactly does liability insurance cover?
Any company has to repair any damage caused to others by a person or property for which it is responsible, in other words, civil liability applies to any organisation. This responsibility can be incurred in several circumstances and may have various forms during the activity of the company. It affects damages affecting all types of third parties such as customers, visitors and suppliers. It could be caused by the company itself as well as by its employees or its manager. Note that civil liability can be unlawful, contractual or semi-unlawful.
Which disciplines are subject to compulsory liability insurance?
Essentially, liability insurance is not compulsory. Indeed, although it is vital, it is optional for many professionals, associations and companies. However, certain regulated disciplines are affected by the obligation to take out this type of guarantee. According to the insurance laws of most countries, building companies and small businesses are affected by this obligation. Midwives, nurses, dentists and doctors are also required to have professional liability insurance. This principle stems simultaneously from public health and insurance laws. Law professionals, accountants and real estate agents are also required to take out this policy. In other words, civil liability insurance affects disciplines that are subject to a specific legal regulatory framework which depends on professional organisations whose role is to set the conditions of access to a profession, verify the credentials and evaluate the necessary skills to do it.