Professional liability and other professional liability insurance

General information

Professional liability insurance is designed to protect freelancers or self-employed persons who assume an increased level of risk as a result of their professional activity from being exposed to claims for damages. Professional liability insurance is recommended for some professional groups, and even legally required for others.

Errors and omissions insurance is a form of professional liability insurance for persons and companies whose professional oversight results in real financial losses (generally not personal injuries or material damages). This primarily concerns advisory or auditing professions.

What is known as industrial third-party insurance is recommended for enterprises and companies with a number of employees.

Cover

Professional liability insurance generally compensates for the costs of any personal injuries, material damages and financial losses incurred by third parties during their professional activity.

• Depending on the insurance contract, the insurance will pay out for damages resulting from unintentional or negligent acts or omissions.
• This does not include damages that were inflicted on a third party intentionally, that is to say wilfully.
• Depending on the contract that was concluded, the insurance will even provide compensation for damages in the event of gross negligence.
• It should also be checked whether the contract has ruled out certain risks (industry-specific exclusions).

Professional liability insurance may be taken out with almost all larger Austrian insurance providers. In many cases, chambers and professional associations have negotiated framework agreements with insurance providers.

Professional liability insurance is particularly recommended for self-employed (professional) activities in the legal, financial, insurance and planning sectors, but also for freelancers such as interpreters. It is legally required for some advisory professions. Further information on expert liability^{German text} can be found at oesterreich.gv.at.

Compulsory professional liability insurance

Professional liability insurance is required to practise some self-employed healthcare professions:

• doctors (→ USP)^{German text}
• clinical psychologists, health psychologists and psychotherapists (→ USP)^{German text}

Professional liability insurance or errors and omissions insurance is also legally required for these advisory professions:

• lawyers (→ USP)^{German text}
• notaries (→ USP)^{German text}
• bookkeeping professions (→ USP)^{German text}
• accountancy professions (→ USP)^{German text}
• civil engineers (→ USP)^{German text}

Further information on industrial liability insurance^{German text} can be found at USP.gv.at.

Further links

All types of insurance (→ VVO)^{German text}