Professional liability insurance for workers is one element of the vast liability insurance industry. It is difficult to come up with a profession that would not be fraught with risks, unpredictable dangers, accidents that could provoke damage. In some cases, the damage is significant, the victims are third parties. The current legislation obliges to distinguish between the nature of the damage, the amount of damage, the causes and features of the situation. At the same time, it is important to take into account the individual qualities of different types of professional activity, because the differences are more than significant. Let's try to understand this issue in more detail.
General view
Insurance of civil and professional liability is the field of activity of specialized enterprises that have receivedfor this license in accordance with the regulations declared by the laws of the country. When insuring a client, such companies take into account what are the characteristics of different areas of activity, what typical risks accompany specialists. The object of insurance is liability for damage:
- he alth;
- life;
- property.
This takes into account that the specialist conscientiously performed the functions assigned to him, performed actions corresponding to the profession, observed the established rules and restrictions. A claim can be made if errors, oversights, omissions were made, tasks were performed to some extent negligently. As follows from the provisions of the law, professional liability insurance provides compensation for damage only in the case when the harm is recognized as unintentionally caused. This is indicated in the Civil Code in an article published under the 963rd number.
Everything has its time
Professional liability risk insurance involves the conclusion between the insured and the service provider of an agreement, which fixes how to recognize that an insured event has occurred, how to analyze the circumstances that provoked this. Particular attention should be paid to the algorithm for calculating the damage that must be compensated to the injured person. When forming an agreement, both parties take into account the specific features of a person's profession, the risks with which it is associated. It is necessary to understand exactly what events from the professional life of a specialist can lead to damage, howthere is a high probability of their occurrence.
Under the contract, the civil liability of a specialist is insured if he can provide an official confirmation of the qualification level, confirm the success of the licensing procedure, which means the right to occupy a position, provide services, perform operations related to work tasks.
An individual who practices the provision of certain services, as well as a community, a company, or another legal entity, can act as an interested person in concluding a professional liability insurance contract. In this case, an individual, that is, a specific person, will be insured by agreement.
Responsibility and obligations
The fact of an accident that falls under the provisions of a professional liability insurance contract is established in court. The law enforcement agency determines that an event has occurred that falls under the one described in the formal agreement, recognizes the need to bear responsibility to the victim and determines how great the damage is, what compensation should be for a particular case. However, the possibility of concluding an agreement before the court is not canceled. This is more typical of circumstances where there is indisputable evidence of the fact that the insured has caused harm to a third party. In this case, both parties must agree on the amount of damage, compensation.
In accordance with the rules of compulsory professional liability insurance, it is impossible to count the caserepayable under such an agreement if the insured's intentional actions or inaction were the cause, and the person was aware of the consequences of such behavior or sought to harm the victim. It cannot be classified as an insurance situation when the policyholder violated the law, caused moral damage to the victim.
Financial side of the issue
The current regulations governing compulsory professional liability insurance establish that the amount payable must be formed taking into account the wishes of all interested parties, as well as the provisions of the law. The court establishes a certain amount in rubles or relative to the minimum wage. In some cases, the wording does not contain restrictions.
A contract between a professional and an insurance company is concluded at the initiative of the person concerned, that is, the insured. As a rule, a statement is drawn up for this, on the basis of which a mock-up of the agreement is drawn up, then signed by the participants if everyone agrees with its provisions. The parties come to an agreement regarding the limits of liability with regard to one case recognized as insured. The contract is concluded according to the logic of a franchise. Duration of action - from a year or more, although in exceptional cases it is possible to conclude an agreement for a shorter period.
If we analyze domestic practice, we have to admit that professional liability insurance is most relevant for professions and positions:
- notary public;
- auditor;
- agent forreal estate;
- doctor;
- guard.
In the practice of other powers, the list is somewhat wider, since insurance itself is much more common. Specialists assume that professional liability insurance will become more active in Russia in the future as well. Already now, as experts say, if there is every reason to assume a quick change in the situation, an expansion of the profile of positions, professions, representatives of which would be interested in concluding an insurance agreement.
Detailing: The job of an auditor
The current laws of our country oblige everyone who is interested in working in this area to first conclude an insurance agreement. Without an appropriate policy, entrepreneurship in this area becomes a violation of the law. This approach is not accidental, it helps to reduce the likelihood of property costs associated with causing unpredictable, unwanted harm to customers.
Relevance of professional liability insurance of the auditor is due to the complexity of the tasks associated with such a professional choice. An independent analyst provides monitoring services in three aspects:
- accounting reports;
- financial reports;
- document flow of the company.
Volumetric practice shows that even an experienced, competent specialist can make a mistake that can provoke considerable damage. This is especially true in conditionsfrequent amendments to existing legislation.
Participation in the insurance contract allows you to cover the costs associated with damage to the inspected object due to incorrect or insufficiently accurate service. The main condition for compensation by an insurance company is the inadvertence of the erroneousness of the information transmitted by the auditor to the customer. In fact, the policy becomes a guarantor of the absence of financial losses in the course of the auditor's activities.
Question: Versatile
In practice, professional liability insurance not only helps to prevent sudden losses associated with mistakes made in the work, but also to interest investors and potential customers. Having evidence of the auditor's participation in the insurance program, persons will be more willing to make contact and cooperate. An insurance arrangement is a guarantee that in the event of a mistake, the injured party will immediately receive all the due payments.
The error of the performed verifications may be revealed some time after the completion of the procedure. This is taken into account when concluding an agreement with the insurance company, and the program assumes coverage of losses even if they occur after some time. Specific boundaries are negotiated officially, prescribed in the contract.
Auditor risks:
- damage to client property;
- poor quality, incomplete, untimely fulfillment of obligations;
- unpredictable legal costs forclaim filed after completion of the audit procedure.
Do I need this?
Professional liability insurance helps protect yourself from unintentional mistakes caused by misinterpretation of the law, lack of timely access to the regulatory framework. The auditor protects himself from the risks associated with an insufficiently thorough check of the statements - some distortions may escape the attention of even the most attentive specialist. Miscalculations can be the most banal - arithmetic. In addition, liability insurance helps reduce the risk of:
- poor quality advice that caused the client to make a mistake;
- loss, damage to trusted documentation, property;
- disclosure of classified information;
- incorrect calculation of taxes and other amounts payable;
- inaccurate documentation.
Property professional liability insurance involves the payment of some agreed financial mass to the auditor's customer. Payment is possible already at the time of filing a statement of claim or on the basis of a court decision, if the instance decided to compensate for losses caused by an auditor's mistake.
Controversial aspects
All currently practiced types of professional liability insurance assume that in some cases the insurance company will not reimburse the client for amounts due by the court. Insurance does not include risks if the damage is caused bycircumstances known to the auditor prior to working with the client. The insurance company is not obligated to pay anything if:
- fraud, crime, auditor's bad faith;
- the state of intoxication of a specialist at the time of performance of work duties;
- Insufficient level of qualification of the performer of the work;
- types of damage not covered by the insurance program;
- errors provoked by the suppression of the boundaries of the auditor's professional duties;
- relationship between auditor and filing company;
- family relationship between auditor and client.
As a rule, restrictions are indicated in the insurance agreement: military operations, terrorist and other acts contrary to the law. Insurers rarely agree to include moral damage to the client in insurance risks.
Features of the arrangement
Usually, the duration of the agreement is from a year or more. A fairly common practice is to limit the term by the end of the audit activity of the insured. To conclude an agreement, you will have to choose an insurer, fill out a written application, indicating all the information about yourself, provide access to the documentation, on the basis of which the insurer will be able to calculate the risks, the price of the policy, the required level of coverage. It is the responsibility of the insured to provide data on previously concluded risk insurance agreements, as well as to determine which list of insured eventsI am interested in how long the contract is concluded, on what conditions the parties will cooperate.
After signing the agreement, the client pays for the services of the insurance company and receives supporting documents. The agreement covers one case, one client of the auditor. If in the future it turns out that the auditor has hidden important information, the contract will be invalidated.
Working as a doctor: its own characteristics
A specific feature of such activity is the possibility of inflicting damage to the client that is incompatible with life. The insurance program in the field of medicine has become a basic element of the social, legal, and financial protection of specialists.
To conclude an agreement, you will have to provide documentation confirming the possession of professional skills, information that allows you to work as a doctor or manage persons involved in such activities. The occurrence of an insured event is determined by the qualification level of a professional who is forced to work in limited conditions - we are talking about the specific features of the client's body. Even a highly qualified doctor, conscientiously doing all the right things, can harm the patient, albeit unintentionally. This can lead to serious consequences up to death. Professional liability insurance for medical workers involves the conclusion of an agreement that takes into account the possibility of moral damage.
The particular difficulty of this area lies inconstant development: bacteria mutate, technologies are improved, drugs are being developed. Not always a doctor has access to the latest information, more accurate information, modern equipment. Omission, oversight can be the cause of an irreparable mistake, while the harm is different:
- cash;
- moral;
- physical.
Important nuances
Professional liability insurance for doctors has become especially relevant in recent years, when cases of patients and their relatives going to court who are dissatisfied with the quality of the service provided in the hospital have become more frequent. A doctor who fulfills the obligations assigned to him may suffer a heavy punishment, although in fact the fault of the specialist remains controversial - the circumstances are too complicated. Occupational insurance allows you to somewhat secure yourself in this aspect.
The insured is an individual, a legal entity who enters into an official agreement with the insurance company and pays the amounts due under this program on time and in the agreed manner. More often, doctors are insured by institutions in which specialists are employed, but a doctor of his own free will, as well as a paramedic, laboratory assistant, and a nurse can conclude an agreement with an insurance company.
Insurance aspects
The object of the agreement is the responsibility of the medical field worker to the patient, whose he alth can be damaged by providing specific services, incorrectly performing manipulations, and making unsuccessful diagnoses. Actuallythe property, the doctor's money are insured, since in the event of an insured event you will not have to pay compensation "from your wallet": the insurance company will deal with the patient's settlements.
Insured risks associated with a career in medicine:
- low level of quality of the service provided, which caused he alth problems;
- damage to the he alth, life of the client through the use of methods associated with increased danger;
- misdiagnosis;
- Wrong choice of therapeutic program;
- omission of a prescription for drugs at the stage of discharge of the patient;
- discharge from the clinic, early closure of sick leave;
- erroneous instrumental studies.
The list goes on - insurance risks are any actions that provoked the death, disability of a patient who used the help of a doctor.
Many variations
The situations described above are the most typical, often encountered in practice, but often an agreement is required that regulates the rules for insurance of professional liability of appraisers, because such persons can make a mistake when providing services in the chosen profile. In our time, any person, applying for a certain service, understands perfectly well that the contractor must responsibly cope with the performance of the duties assumed, otherwise you can safely demand compensation. Litigation is becoming more and more common, which means that insurance will be even more in demand in the future than it is today.
Professional liability insurance of a notary, doctor, lawyer, inspector is the most effective and safe method of protecting your own property, although it is effective only if the specialist is highly qualified, services are provided in good faith, and mistakes were made unintentionally. The agreement with the insurance company takes into account that the occurrence of the event is not determined by external factors, but depends only on the qualification level of the insured.
Insurance and Opportunities
Professional liability insurance for a notary, lawyer or other professional involves compensation for damage under several articles. Quite often, it is applied to property or is otherwise material, while the victim bears some costs, losses. Financial risks are associated with the failure to receive planned profits, income or rights that allow the use of property. Professional liability insurance of a lawyer, doctor, appraiser, analyst may involve harm to the he alth, personality of a professional client. On payments under the program, the victim gets the opportunity to restore he alth or purchase products, equipment that compensate for the imperfections received. Finally, the last type is moral damage, which includes compensation for losses associated with loss of reputation. This is especially true when a contract is concluded for professional liability insurance of a lawyer or other professional that can influence the client's social status. Moral damage is possible if the subject matter is disclosed.keeping patient he alth information confidential.
Professional liability insurance for lawyers, doctors, appraisers and other professionals may include separate provisions regarding the claim of indirectly affected persons. A classic example is the relatives of a patient who died as a result of a medical error, as they were forced to pay for the funeral. As for the claims of the victim, and for the factors of moral damage, compensation is not always possible. Different insurance companies practice different policy options: some include them in the agreement, others refuse to include such clauses. When signing an agreement, it is important to pay attention to this.
In fact, at present, you can insure against absolutely any risk - there are many programs, so everyone can find something to their taste, taking into account individual characteristics, the specifics of professional activity. These opportunities should not be neglected - risks haunt every modern person, and in recent years, technological progress has led to an increasing number of dangerous situations. In addition, insurance is regulated by law, so in some cases it becomes not desirable, but a prerequisite for work.
