Which type of liability insurance is available for different professions.
The obligation to arrange professional liability insurance is imposed by legislation, generally Act No. 89/2012 Coll., Civil Code, § 2779 - § 2781, as well as acts which regulate activities of specific professions. The obligation to arrange this insurance applies to attorneys, notaries, bailiffs, insolvency administrators, experts, property appraisers, auctioneers, auditors, tax advisors, patent attorneys, physicians, dentists, veterinarians, pharmacists, health care providers and specific health care providers, insurance intermediaries, insurance brokers and agents, independent claims adjusters, authorized architects, authorized engineers and technicians active in construction, energy auditors, landfill operators, hunters in the exercise of the right to hunt and other professions.
Professional liability insurance is also recommended for those professions not expressly required by acts (accountants, providers of consulting services in the field of economic activities and IT, interpreters and translators, designers, etc.). Recommended professional liability insurance includes also general business liability insurance. This insurance covers damages to a third party or to an employee that may occur during the company's day-to-day operations. It is farther recommended to arrange employee liability insurance. This insurance covers damages which the employee unintentionally causes to the employer up to 4.5 times of monthly salary.
Information on compulsory professional liability insurance is available on the website of the Czech Insurance Association at the link: https://www.cap.cz/vse-o-pojisteni/pojisteni-odpovednosti/obcane.
Which type of liability insurance is compulsory for specific professions.
The obligation to arrange professional liability insurance is imposed in particular for the following specific professions:
The attorney – Act. No 85/1996 Coll.
The notary - Act. No 358/1992 Coll.
The bailiff - Act. No 120/2001 Coll.
The insolvency administrator (a natural person, a public company and a foreign company) - Act. No. 182/2006Coll. and Act. No. 312/2006 Coll.
The expert – Act. No 254/2019 Coll.; the list of expert fields is attached to this Act.
The property appraiser - Act. No 455/1991 Coll.
The auctioneer - Act. No 26/2000 Coll.
The auditor - Act. No 93/2009 Coll.
The tax advisor - Act. No 523/1992 Coll.
The patent attorney - Act. No 417/2004 Coll.
The physician, the dentist, the pharmacist - Act. No 220/1991 Coll.
The health care provider - Act. No 372/2011 Coll.
The specific health care provider - Act. No 373/2011 Coll.
The veterinary – Act. No 381/1991 Coll.
The insurance intermediary - Act. No 38/2004 Coll., both natural and legal persons domiciled in the Czech Republic.
The insurance broker - Act. No 38/2004 Coll.
The insurance agent - Act. No 38/2004 Coll.
The independent claims adjuster - Act. No 38/2004 Coll., both natural and legal persons domiciled in the Czech Republic.
The authorized architect, authorized engineer and technician active in construction - Act. No 360/1992 Coll.
The energy auditor - Act. No 406/2000 Coll.
The landfill operator - Act. No 185/2001 Coll.
The hunter in the exercise of the right to hunt - Act. No 449/2001 Coll.
Furthermore, the obligation to arrange profession liability insurance for damages caused by the operation of aircraft, rail vehicles, vessels, ships.
What type of risks insurance policies can cover: professional liability for errors or negligence committed in the course of professional duties / business activities ; general third-party tort liability incurred in the exercise of the profession / the business activity.
Professional liability for errors or negligence
The scope of insurance, exclusions and limitations of insurance coverage depend on the specific conditions of individual insurance undertakings. You will find complete information about the insurance product in the pre-contractual information, insurance conditions and insurance policy. It is possible to arrange additional insurance according to the offers of insurance undertakings.
Compulsory professional liability insurance covers in particular:
General liability for damage caused to the third parties arising from the exercise of the profession
Recommended professional liability insurance also includes business liability insurance and employee liability insurance in the exercise of a profession.
Business liability insurance – compensation for damage caused to the third party in connection with services provided, operating activities, a defective product, a property ownership or a hire. The insurance covers in particular:
Employee liability insurance in the exercise of a profession - the agreed limit of compensation should correspond to at least 4.5 times the average monthly wage (the employer may demand financial compensation up to this amount in the event of damage). The insurance covers:
The scope of insurance, exclusions and limitations of insurance coverage depend on the specific conditions of individual insurance undertakings. You will find complete information about the insurance product in the pre-contractual information, insurance conditions and insurance policy. It is possible to arrange additional insurance according to the offers of insurance undertakings.
Any exclusions set in law, such as for harm caused intentionally.
Professional liability insurance covers the obligation to compensate unintentionally caused damage caused to another person, the most frequently damage caused by personal injury or death, damage to movable item or building, financial damage and the legal representation costs. The scope of insurance is arranged in the insurance policy and can be modified by exclusions from the insurance or by additional insurance conditions. The scope, exclusions and limitations of insurance coverage are defined in the insurance conditions of individual insurance undertaking.
In general, damages and injuries caused intentionally, environmental damage, damages directly or indirectly caused by war events, riots or strikes, damages caused by illegal act etc. are excluded from the insurance. Some exclusions from insurance may be supplemented by additional insurance conditions or contractual arrangements. Information on exclusions from liability insurance is specified in the insurance conditions of individual insurance undertaking. Professional liability insurance does not cover damage from employment and service relationships, including liability in the case of an accident at work or an occupational disease, including recourse compensation from health or sickness insurance.