Professional Indemnity insurance against claims arising during the conduct of financial agency or financial advisory business

Professional Indemnity insurance against claims arising in the course of exercise of financial agency or financial advisory business represents a compulsory insurance under Section 30 of the Act No. 186/2009. Under the abovementioned Act any financial agent or financial advisor is responsible for any damages arising from their exercise of financial agency or financial advisory business.

Within the basic insurance coverage the insurance company provides the following additional benefits:

• EUR 5,000 applicable for damage to property taken over by the insured from the client in pursuit of performing the profession;
• EUR 5,000 applicable for damages caused by the insured as a consequence of unintentional infringement of intellectual property rights;
• also covered are the costs for legal defence incurred in connection with any claims for damages against the insured.

The financial agent and the financial advisor themselves must have this insurance in force before the commencement of their business and remain in force during the entire period of their operations. The policy should cover a minimum amount of EUR 100,000 per each insured event and a minimum amount of EUR 150,000 in aggregate for all insured events occurred per calendar year.

The insurance policy must also be valid in the territory of other member states and the amount of the insurance coverage under the insurance policy must be in the minimum amount of EUR 1,250,000 for each insured event and in the minimum amount of EUR 1,850,000 in aggregate for all insured events occurring in one calendar year.

Downloads:

• General insurance terms for professional indemnity insurance
• Form on important contractual terms for professional indemnity insurance PREMIUM VPPZ PI
• Questionnaire Professional indemnity insurance