Professional indemnity insurance

Professional indemnity insurance in the Netherlands

Any entrepreneur, business owner or freelancer who gives advice and provides a professional service could be held accountable for professional mistakes, errors or negligence. For example: giving wrong advice or providing incorrect or incomplete information. Professional indemnity insurance protects you if someone is dissatisfied with your work and claims your service provision was incorrect and he suffers damage as a result. VMD Koster helps you to make things clearer and we will give you honest advice about the best insurance for your company.

What is covered by professional indemnity insurance?

Professional indemnity (PI) insurance covers financial damage if a business is sued for incorrect advise or mistake. It doesn't matter whether it's your fault or your employee. Professional indemity insurance covers financial loss. Think about reimbursement and compensation payments of legal fees. Which can be a significant amount in some situations. Please note that any reputational damage  caused by the error is not covered by this insurance.  

Honest and independent advice

Our risk management specialists are eager to talk to you. Together we will look at the risks you may encounter and whether you can bear them. We analyse, advise and help you prevent and limit risks. Fill in this form or contact us on 0172 611 116 for an appointment.

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Who needs professional indemnity insurance?

This insurance covers the financial consequences of alleged or proven mistakes that someone makes while practicing his or her profession. Whether you need professional indemnity depends on what type of businesss you run. The PI is especially indispensable for these professional groups:

  • Consultancy firms
  • IT companies
  • Management consultants
  • Accountants and tax consultants
  • Lawyers
  • Architects
  • Doctors and other medical specialists
  • Engineering firms
  • Interim managers
  • Notaries
  • Real estate agents
  • Marketing, advertising and communication consultants

These professional groups provide or perform services. So if damage is caused by one of these specialists due to an error (incorrect action, mistakes or omissions), this will mainly result in financial damage. In this case, they can appeal to the IP if they have taken out this insurance.

Advantage professional indemnity insurance

  • Riskmanagement
    With the IP you pass on the covered liability risk and the often high additional costs to the insurer. As a result the impact of such a claim on the continuation of your company and the progress of the business operations will be reduced.
  • Legal
    The court will not always respect the contract that you have concluded with your client, in which you as a supplier may limit or exclude your responsibility and liability. An IP also provides protection if these clauses are set aside by the court.
  • Commercial
    Clients often prescribe to suppliers that they must insure themselves against the risk of professional liability. Without this insurance, you run the risk of missing out on assignments.
  • Regulatory compliance
    There are umbrella professional organizations that require professional liability insurance for its members.

What's the difference between professional indemnity insurance and business liability insurance in the Netherlands?

Professional indemnity is sometimes confused with business liability. Most companies have business liability insurance, but this only covers damage to material things such as property of third parties or injury to persons. It does not cover pure financial loss. When you combine the two together, you have complete coverage. Then you will have profesional indemnity insurance for financial loss and damages and business liability insurance for property and personal injury.

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