What is a professional RC for?
Professional civil liability covers third party claims when an error, omission, negligence or breach of professional duty causes damage. Depending on the profession, this may involve bodily injury, material damage, consequential financial loss or pure financial loss.
This last notion is essential: pure financial loss is a financial loss without prior bodily or material damage. Example: incorrect advice, calculation error, lost document, missed deadline, incomplete report or recommendation that causes economic loss to the client.
Corporate liability or professional liability?
Corporate liability mainly protects against bodily injury and material damage linked to operations: premises, installation, product, personnel or activity on site. Professional liability is more aimed at errors in service, advice, planning or mandate. Many SMEs need a combination of both, as the risks overlap but are not identical.
Typical situations
- Tip: a tax, financial, legal, IT or strategic recommendation results in a loss for the client.
- Planning: a calculation or design error causes additional costs on a project.
- Services: a poorly performed service, a delay or an omission creates measurable damage.
- Health: an error in treatment, diagnosis or information results in a high claim.
- Products or works: a product, installation or intervention causes damage to a third party.
- Data and reputation: some policies cover damages linked to personality, data or crisis communication.
Is it obligatory?
Professional liability is not compulsory for all activities in Switzerland. It may, however, be required by law, a cantonal authority, a professional order, a client contract or a call for tenders for certain regulated or sensitive professions, in particular in health, law, auditing, finance, construction or specialized consulting.
Even when it is not imposed, it remains strongly recommended for freelancers, consultants, architects, engineers, fiduciaries, developers, agencies, coaches, firms and SMEs who sell expertise. Without coverage, the claim can directly target the company or personal fortune depending on the structure.
What the police must specify
- Activities insured: professions, services, branches, countries and new services must be declared correctly.
- Types of damage: bodily injury, material damage, consequential damage and pure financial damage.
- Sum insured: tailored to maximum risk, customer contracts and tender requirements.
- Deductible: amount payable per claim and impact on the premium.
- Temporal validity: basis generator or claims made, retroactivity and discovery period after end of contract.
- Subcontractors: coverage of their errors, possible recourse and contractual requirements.
- Exclusions: intentional acts, guarantees of results, fines, contractual penalties, undeclared activities or specific cyber risks.
Why defense is as important as compensation
Good professional liability is not limited to paying compensation. It first examines whether the claim is founded. If it is exaggerated or unjustified, the insurer can take charge of the defense. For an SME, this passive protection avoids financing expertise, lawyers and lengthy negotiations alone.
Our support
Finwise analyse votre activité, vos contrats, votre chiffre d’affaires, vos sous-traitants, vos obligations professionnelles et vos scénarios de sinistre. Nous comparons les assureurs suisses pour obtenir une couverture claire, cohérente avec votre protection juridique, votre cyberassurance et votre D&O.