Professional Liability

Professional liability insurance (RC professionnelle) is relevant to a wide range of professionals in Luxembourg:

• Liberal professions - Architects, engineers, lawyers, accountants, auditors, doctors and consultants. For many regulated professions, RC Pro is a legal requirement to practice.
• IT and technology - Software developers, IT consultants, managed service providers. A coding error, data breach or system failure can expose you to significant client claims.
• Financial services - Independent financial advisors, fund administrators, compliance officers. The Luxembourg financial regulator (CSSF) may require proof of professional liability coverage.
• Small business owners and freelancers - Anyone providing professional services or advice to clients, regardless of company size.

Even if not legally mandatory for your profession, RC Pro is strongly recommended. A single claim from a dissatisfied client can easily exceed the cost of years of premiums.

These two types of liability insurance are often confused but cover very different risks:

RC Professionnelle covers damage arising from your professional advice, services or intellectual work. If a design error, incorrect audit report, flawed software or bad counsel causes financial loss to a client, this policy responds. It is about the quality and correctness of your professional output.

RC Exploitation covers damage caused by your business operations - bodily injury to a visitor on your premises, damage caused by your employees during their work, or property damage linked to your daily business activities. It is about the physical risks of running your business.

Most businesses need both. A consulting firm needs RC Pro for advisory errors and RC Exploitation for a client who slips in their office. We bundle these intelligently to avoid gaps or overlaps.

Understanding real-world scenarios helps you appreciate why adequate coverage matters:

• Architecture and engineering - A structural calculation error leads to costly remediation works. The client sues for the additional construction costs and project delay.
• IT services - A software update introduces a bug that causes a client's e-commerce platform to go offline for 48 hours. The client claims lost revenue and reputational damage.
• Accounting and audit - An incorrect tax filing results in penalties and interest charges for the client, who seeks compensation for the additional cost.
• Consulting - Strategic advice leads to a business decision that results in significant financial losses. The client argues the advice was negligent.
• Healthcare - A diagnosis error or treatment complication leads to patient harm and a malpractice claim.

In each case, the cost of defence alone - even if you ultimately prevail - can be substantial. RC Pro covers both legal defence costs and any damages awarded.

As businesses in Luxembourg increasingly depend on digital infrastructure, cyber risk has become a critical concern for professionals of all sizes:

Data breaches - Under GDPR, businesses handling personal data face significant fines and liability if a breach occurs. A cyber insurance component covers notification costs, forensic investigation, legal defence and regulatory fines where insurable.

Ransomware and business interruption - An attack that encrypts your systems can halt operations for days or weeks. Cyber cover reimburses lost income and the cost of system restoration.

Third-party claims - If a breach at your company exposes your clients' data, they may seek compensation. Cyber liability insurance covers these third-party claims.

Dedicated cyber insurance can be added as a standalone policy or integrated into your RC Pro package. We assess your digital exposure and recommend the appropriate level of protection for your business fleet, office equipment and digital infrastructure.

To provide an accurate professional liability quote, insurers need specific information about your business. Having these details ready speeds up the process:

• Business activity description - Exactly what services you provide, to which types of clients, and in which countries.
• Annual revenue - Your turnover helps determine the appropriate coverage limit and premium level.
• Number of employees - Staff size impacts both the risk assessment and RC Exploitation premium.
• Claims history - Any past claims or incidents, even if they did not result in a payout, should be disclosed.
• Current coverage details - If you already have insurance, your existing policy limits, deductibles and renewal date.
• Specific risk factors - For example, handling of sensitive data, cross-border work or use of subcontractors.

We guide you through the information gathering and handle negotiations with insurers to ensure you get the right coverage at a competitive rate.