If you as entrepreneur or self-employed make a mistake while doing your job, you are liable for it. And even though you obviously did not intentionally make the mistake, you must repair or compensate for the damage. Do you have employees? Then their mistakes, carelessness or errors are also covered by your liability.
With professional BA or professional liability insurance, you cover yourself to compensate for physical, material and immaterial (e.g., pain, suffering) damages. Such insurance is even more relevant when you are self-employed and provide mainly intellectual services (e.g., if you are an accountant, architect, consultant or real estate agent, or have a medical or legal profession). In some cases, it is even mandatory. Without insurance, you risk having to pay for all costs incurred due to your mistake or error.
Disclaimer
This page is part of a lexicon and does not provide product information or contractual details on insurance services. For specific information, please refer to the official documentation or contact your insurance agent.
