Professional Responsibility
Protección contra reclamaciones de clientes por daños financieros que alegan errores o negligencia en su servicio.
Get your quote- Cobertura de gastos legales
- Tranquilidad para la ejecución de sus servicios.
- Evite pérdidas con procesos largos.
In summary
Understand the product
Check out some questions that will give you a better understanding of Professional Liability Insurance
What is Professional Liability Insurance?
- Protection against liability risks arising from errors or omissions in the provision of professional services
- Guarantees payment for bodily, material, and/or financial damages caused to third parties
- Includes coverage for legal defense costs
Why is it necessary?
- Ensures the financial health of your company in the event of a customer claim due to errors in your services
- Requirement for certain commercial contracts in some industries
Who needs it?
- Companies that provide professional services, such as consulting firms, advertising agencies, technology companies, among others
- Professional freelancers, such as lawyers, doctors, engineers, accountants, architects, among others.
RISKS
With relevant risks, it is essential to be insured
BRL 94 million
Average cost of defending a business lawsuit in Brazil
Amaral, Yazbeck Advogados
R$ 260 million
Amount paid for Professional Liability claims in Brazil in 2022
SUSEP
8.5 million
Average number of consumer lawsuits per day in Brazil.
Brazil National Council of Justice
Coverages
What is included in the coverage?
Defense costs
Payment of lawyers and expenses related to legal investigations involving the provision of professional services, including negligence, error, or omission.
Indemnifications
Covers indemnities for material, moral, and aesthetic damages caused to third parties resulting from failures in the provision of professional services.
Expert fees
Coverage for expert fees for alleged damage assessment.
- Fraudulent, illegal, or unethical actions carried out by policyholders that cause harm to third parties.
- Compensations resulting from breach of contracts by policyholders.
- Data breaches and cyber attacks, covered by Cyber Insurance.
- Bodily and property damage not directly caused by errors in service provision, which is covered by General Liability Insurance.
Use cases
Examples of D&O claims
1. The problem
A law firm is hired to defend a company in a legal proceeding. During the process, a documentation error occurs that harms the company’s defense.
2. What was done
The company activates the Professional Liability coverage and hires specialized lawyers to defend the accused law firm.
3. Outcome of the event
The insurer covers all defense costs and, in the end, the law firm is considered innocent of professional error charges.
1. The problem
A technology company developed a software that presented serious failures, causing financial losses for a client.
2. What was done
The company activates the Professional Liability coverage and hires specialists to investigate the error and correct it.
3. Outcome of the event
The insurer covers the costs of software correction and compensates the client for the financial loss suffered.
1.The problem
An accounting office makes a mistake in providing tax management services to a client, causing fines for unpaid taxes.
2. What was done
The accounting office activates the Professional Liability Insurance coverage.
3. Outcome of the event
The insurer covers the costs of correcting the error and any fines imposed on the client, avoiding financial losses for both parties involved.
1. The problem
Real estate agent sells property with irregular documentation, causing legal and financial problems for buyers.
2. What was done
Buyers file legal actions, alleging negligence and omission of information by the brokerage.
3. Outcome of the event
Insurance company activates civil liability insurance, covering defense costs and compensation. Document verification failure is proven and buyers are compensated.