Liability & Professional Risks
Professional Indemnity
Professional indemnity concerns the consequences that can follow from an error, omission or flawed advice given in the course of a professional activity.
What is it?
This is cover concerning the liability of a professional or a services business, where a client claims to have suffered loss due to an error, omission or inadequate advice. It mainly concerns those who provide specialist knowledge or advisory services. The exact content of each solution differs by profession and insurer, and is always confirmed case by case.
Who is it for?
It is relevant to professionals and businesses that provide advice, opinions or specialist services to clients, such as accountants, engineers, consultants, brokers and IT service providers, as well as regulated professions for which specific requirements may apply.
Legal position
Is it compulsory in Cyprus?
Compulsory in certain cases
Professional indemnity is compulsory by law or regulation for certain regulated professions in Cyprus, while for others it remains optional or may be required contractually by clients or partners. The same obligation does not apply to every profession. Vesta can help clarify what applies to your circumstances.
General information only. Requirements can change and depend on your activity — Vesta can help clarify what applies to your circumstances.
When might you need it?
You begin providing advisory or specialist services to clients.
A client or partner asks for evidence of professional cover before signing a contract.
You expand your services into a new area or market.
Your profession falls within a regulated sector with specific requirements.
You take on larger or more complex projects with greater exposure to error.
These are illustrative circumstances, not a description of policy terms, conditions or exclusions.
Why review this cover?
An error or omission in professional advice can have financial consequences for a client and, in turn, legal consequences for the professional. A periodic review helps establish whether the cover matches the scope of services provided, the size of the projects and any regulatory requirements of the sector.
The Vesta approach
Understand first, then solutions.
Before discussing solutions we want to understand the nature of the services you provide, the type of clients you serve and any regulatory obligations relevant to your profession. We then look at what applies to your circumstances and the points worth reviewing, so your decision is based on a genuine understanding of your situation.
Next step
Let's look at your circumstances.
Tell us how things work in practice and we will explain what is worth reviewing before any solution is discussed.
Prefer to speak with us?
If you would rather talk it through, tell us a little about your business and we will come back to you.