Professional Liability Insurance: Protection Against Errors and Omissions
Professional Liability Insurance (also known as Professional Indemnity or PI) is a critical tool for specialists whose advice or services could cause financial loss to a client. In Georgia, for certain professions, this insurance is mandatory by law, while for others, it is voluntary but essential for gaining trust. This service protects professionals (doctors, lawyers, accountants, architects, engineers) from costs arising from claims filed by clients—whether for negligence, calculation errors, misdiagnosis, or breach of confidentiality. Legal support for professional liability insurance involves not just purchasing a policy, but properly assessing risks and protecting the client's interests before the insurer and third parties when an insured event occurs.
What Does This Service Cover?
Legal services regarding professional liability insurance include:
- Mandatory Insurance Requirements Analysis: Checking legally established limits and conditions for specific professions (e.g., notaries, auditors).
- Insurance Contract Audit: Detailed study of the policy text to eliminate "traps" and exclusions that leave the professional unprotected.
- Risk Assessment: Identifying specific risks arising from professional activities and selecting appropriate coverage.
- Claims Handling and Defense: Legal assistance when a claim is filed by a client (injured party), negotiation with the insurer, and representation in court.
- Recourse Claim Management: Protection against cases where the insurance company tries to recover damages from the professional (if intent or gross negligence is alleged).
Common Scenarios When You Need This Service
Professional liability insurance is relevant for the following professions:
- Doctors and Medical Staff: Compensation for harm caused to a patient's health due to medical error (Medical Malpractice).
- Accountants and Auditors: Client fines due to incorrect financial reporting or tax advice.
- Architects and Engineers: Structural stability issues or construction delays due to design flaws.
- Lawyers and Notaries: Losses suffered by a client due to legal error or incorrect document notarization.
Georgian Legal Framework
Professional liability is regulated by the Civil Code of Georgia (tort liabilities). Special laws apply to specific professions: the Law on Accounting, Reporting and Auditing obliges auditors to have insurance. The Law on Notaries also requires mandatory insurance. In the medical field, the Law on Health Care defines a doctor's liability. For architects, the Code on Spatial Planning, Architectural and Construction Activities of Georgia is important.
Process of Service Delivery
The process begins with studying the specifics of the professional's activity. Lawyers advise on what type of insurance you need (voluntary or mandatory) and with what limits. During policy issuance, terms are negotiated with the insurer. If an insured event occurs (e.g., a client sues you), lawyers intervene, prepare a defense, and ensure the insurance company covers the damages and legal costs within the policy limits.
Why Legal.ge?
No one is immune from mistakes, but you can insure against the financial consequences. Legal.ge gives you access to lawyers specializing in insurance and professional liability. The experts on our platform will help you choose the best protection for your career and handle disputes with dignity. Work with peace of mind knowing Legal.ge has your back.
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