Professional liability insurance

[Harry W]

I will work as an independent strategy consultant, based in the Netherlands, for a multinational in Germany. Does anybody have experience in getting a professional liability insurance in the Netherlands, with coverage also for Germany?

[Norbert Bakker]

Hi Harry W, and welcome at the higherlevel forum!

 

4 uur geleden, Harry W zei:

Does anybody have experience in getting a professional liability insurance in the Netherlands, with coverage also for Germany

Yes,  i’ve closed hundreds of them as an insurance broker.

 

Is not so hard also,  for most specialised professional liability insurers will provide you with coverage for the entire European Union by default.

[Norbert Bakker]

In addition: 4 questions that are important to determine which insurers and  which products are suitable or better for you:

 

1. Does your client require you to insure specific limits per claim and/or per year and if so are those limits more or less than € 1.000.000,- per claim? 
2. Are you working on projects with a higher (client) value or budget than € 1.000.000,- per year? 

3. Are you working for companies in technology, construction and infrastructure, (petro)chemicals, pharmaceuticals, biotech, food production or for financial institutions? And if so, does your assignment relate to the core activity of the company/institution in question?

4. Are you also working as a managing director for your client or do you have any power of attorney, even informal?  (this could imply a form of directors liability, which can be included in the coverage, sometimes even without extra charge)

 

If you answer one ore more of the above questions with a Yes, then beware of  any "easy to close" on line offers, they provide no good solution for you! 

[Jeroen Kisters RPLU ARe]

Dear Harry,

 

I agree with what Norbert is writing in respect of the covered jurisdictions but one small hint.

 

You'll very probably (also) get the question about the geographical split of your turnover. If this is more than 50% outside NL than you should not be surprised that the insurer will decline your application.

29 april 2023 aangepast door Jeroen Kisters RPLU ARe

[Jeroen Kisters RPLU ARe]

14 minuten geleden, Norbert Bakker zei:

1. Are you also working as a managing director for your client? (this could imply a form of directors liability, which can be inclused in the coverage, sometimes even without extra charge)?

 

Norbert,

 

Yes, you've a point that Directors & Officers (D&O) Liability is a standard exclusion in any Professional Liability Insurance and that it can be included as an additional coverage in respect of professionals acting ad interim i.e., on a temporary basis as directors or officer. However be aware that Dutch based insurers limit such coverage to the Netherlands only.

 

If applicable it would be a better suggestion to or demand coverage on the D&O policy of the employer and/or to take out an individual D&O Side A policy if the assignment lasts more than one year.

29 april 2023 aangepast door Jeroen Kisters RPLU ARe

[Norbert Bakker]

32 minuten geleden, Jeroen Kisters RPLU ARe zei:

You'll very probably (also) get the question about the geographical split of your turnover. If this is more than 50% outside NL than you should not be surprised that the insurer will decline your application.

It depends on further explanation and future plans: if this is a first assignment and your future intention is to also generate turnover for Dutch clients, the application is less likely to be declined.

 

30 minuten geleden, Jeroen Kisters RPLU ARe zei:

If applicable it would be a better suggestion to or demand coverage on the D&O policy of the employer and/or to take out an individual D&O Side A policy if the assignment lasts more than one year.

 

If applicable.. certainly!

[Harry W]

Thanks for the input and hints. Do you have any suggestions for an insurerer? 

[Norbert Bakker]

43 minuten geleden, Harry W zei:

Do you have any suggestions for an insurerer? 

 

 

Chubb, AIG, CNA, Zurich, Markel, HDI, Liberty, Hiscox. 

 

None of these insurers are direct writers and their online proposaltools (if any) do not provide a suitable offer for you.  My advice therefore: contact an insurancebroker.