Professional errors are omissions, mistakes, omissions and negligence that makes a professional in his work. These errors - however small - can cause major damage.
An error usually does not consist of the act performed, but the underlying idea. This is often based on the expertise and experience (qualification) of the person who makes the mistake or who is responsible for the mistake.
Think of a bookkeeper making a miscalculation or an architect who sees the zoning of the municipality over the head with a design.
misdiagnosis
Professional misconduct may result in financial loss, such as when a wrong advice from a tax advisor leads to pay a company a lot of unnecessary stress.
But professional misconduct may also cause property damage or personal injury, such as a technical consultant makes a calculation error, allowing a building collapses and people business and / or incur injury. Or the classic example of a doctor who sets a wrong diagnosis. Again, this is the professional liability apply.
Financial loss
The regular business liability insurance covers liability for property damage and / or injury. There is also the consequential damage of the property damage and / or injury under. But financial damage - damage that consists solely of a financial loss - and advice damage - damage caused by incorrect advice and / or calculations that bears no relation to the supply of a product by the person giving the advice - do not apply on the regular liability insurance companies. For that professional indemnity insurance is necessary.Why insure?
When liability is high damage amounts involved. This can be worn in the majority of cases not or hardly itself in the form of its own reserve. With professional indemnity insurance to cover this risk. Just make sure you are a professional association member. At many insurers, you can include only take out professional indemnity insurance if you are a member of such an organization.Trends in the field of professional liability?
- Consumerism: causer pays
- Entrepreneurs are often responsible (and for higher amounts)
- Judges are increasingly inclined to assign claims