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Home > Professional Liability Insurance in Portugal: Quick Guide

Professional Liability Insurance in Portugal: Quick Guide

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Published at 30 October 2023

In the intricate world of business insurance, understanding each policy is crucial. One such significant policy for professionals in Portugal is the Professional Liability Insurance. Let's unravel its details.

What is Professional Liability Insurance (Seguro de Responsabilidade Civil Profissional)?

Professional Liability Insurance (Seguro de Responsabilidade Civil Profissional) protects individuals and companies against claims of negligence, malpractice, or inadequacy in the services provided. It covers legal fees, settlements, and any other costs associated with such claims.

Does my Small Business in Portugal Need Professional Liability Insurance?

If your business offers professional advice, consultation, or any service where there could be potential harm from errors or omissions, this insurance is vital. It's paramount for professions such as consultants, accountants, architects, and more.

Benefits of Professional Liability Insurance:

  • Financial Protection: Protect against substantial legal fees and claim settlements.
  • Business Reputation: Demonstrating your proactive approach to potential mistakes by having this insurance speaks volumes about your commitment to quality service.
  • Peace of Mind: Operate with the confidence that mistakes, though unintentional, won't lead to financial ruin.

How to Obtain Professional Liability Insurance in Portugal:

1. Risk Assessment: Evaluate the nature of risks associated with your profession.

2. Seek Expert Guidance: Engage with insurance brokers or agents who are well-versed in the Portuguese landscape.

3. Compare Policies: Obtain quotes from multiple insurers to find the most comprehensive coverage at the best price.

4. Regular Reviews: Ensure your policy remains relevant and comprehensive as your business grows and changes.

Linking to Other Business Insurance Types:

To gain a broader understanding of business insurances in Portugal, consider reading our all-encompassing guide on business insurance in Portugal.

FAQs on Professional Liability Insurance:

  • Is this insurance mandatory for certain professions in Portugal?

  - While it might not be a universal mandate, specific professions, especially those in the medical or legal fields, often require it. Always check with your industry's governing body.

  • What's the difference between Professional Liability and General Liability Insurance?

  - While both cover legal fees and settlements, Professional Liability focuses on errors in professional services, whereas General Liability covers bodily injuries, property damage, or advertising injuries.

  • Can I adjust my coverage as my business grows?

  - Absolutely. Most insurance providers offer the flexibility to amend your coverage as your business needs evolve.

  • Does this insurance cover intentional mistakes or dishonest acts?

  - No, Professional Liability Insurance typically covers unintentional mistakes. Intentional wrongdoing or fraudulent acts are generally not covered.

  • How do deductibles work with Professional Liability Insurance?

  - A deductible is the amount you'll pay out of pocket before the insurance kicks in. Higher deductibles might lead to lower premiums, but it also means higher initial out-of-pocket costs in the event of a claim.

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Rauva is partnered with Swan who will be providing all payment services to Rauva clients. Rauva does not have access to client funds. Funds are kept in accounts provided by Swan, held in BNP Paribas. Swan is an EMI, based in France, supervised, and regulated by ACPR/Banque de France. Swan is authorized to carry out such services in Portugal and registered with Banco de Portugal under the registration number 7893.
Rauva is not a certified accounting or legal services provider. As such, Rauva does not provide accounting and legal services. Rauva acts as an intermediary who facilitates the introduction to our customers of accounting and legal services Partners who are legally registered and certified in Portugal. A list of Rauva’s Partners can be found here.