Liability for pecuniary loss

Financial losses incurred in the course of a professional activity must be borne by the entrepreneur or even the self-employed person. Therefore, these occupational groups bear a high risk, but can protect themselves against claims for damages of this kind with a pecuniary loss liability insurance.

In everyday professional life, a mistake can cause high damages for which the self-employed person or entrepreneur can then be held liable. Therefore, the conclusion of a pecuniary loss liability insurance makes sense for many occupational groups. Whenever the entrepreneur or self-employed person has to fulfil asset-related duties of care, a mistake can lead to financial losses which, in the case of high losses, can also endanger the professional existence of the person concerned and thus lead to financial ruin. As an example of professional groups in which considerable financial losses can occur due to an error, doctors, architects, tax consultants or lawyers should be mentioned here. However, not only in the context of professional activities, but also in the case of voluntary work, an incorrect decision can cause damage. 

If a pecuniary loss occurs, the insurance will cover the liability claims up to the agreed sum insured. However, the insurance only pays for financial losses that are actually justified. Therefore, the scope of insurance usually also includes the defence against unjustified liability claims, which often integrates a passive legal protection function.