Insurance Intermediaries

Professional liability insurance, also known as Errors and Omissions (E&O) insurance, is crucial for insurance intermediaries operating in Cyprus. Whether you are an insurance broker, agent, or consultant, this coverage is designed to protect your business from claims of negligence, mistakes, or omissions in the services you provide to clients. In the complex world of insurance, where intermediaries guide clients through important financial decisions, the risk of errors is always present.

In Cyprus, professional liability insurance is not just a recommended safety net but also a regulatory requirement under the Insurance Distribution Directive (IDD). This EU directive, which applies to Cyprus, mandates that all insurance intermediaries maintain adequate professional indemnity insurance to cover any liabilities arising from errors, omissions, or negligence in their professional duties. Failure to comply with this regulation could result in significant financial penalties and damage to reputation.

This insurance typically covers the cost of legal defence, settlements, or compensation if a client claims they have suffered financial loss due to an error in advice, failure to provide the correct coverage, or any professional misstep. Given the increasing complexity of insurance products and the strict regulatory environment in Cyprus, even experienced professionals are at risk of costly litigation. Professional liability insurance mitigates this risk by providing a financial cushion that covers these expenses, ensuring that the intermediary’s business remains protected.

Having this insurance not only ensures compliance with local and EU regulations but also helps build trust with clients. It demonstrates professionalism and accountability, reassuring clients that they are dealing with a responsible intermediary. In a market as competitive as Cyprus, such confidence can set an intermediary apart, enhancing their reputation and protecting their financial future.