Professional indemnity of lawyers
is a compulsory insurance taken out by entities practicing the lawyer’s profession in accordance with Art. 50 of the Lawyers’ Act.
Armeec Insurance JSC covers the professional liability of the insured in respect of:
- Any sums up to the agreed limits of indemnity which the insured shall be legally liable to pay as compensation for damages caused to clients while performing his/her professional obligations as lawyer (including as a result of negligence, errors or omissions);
- Any claims settlement expenses made with the consent of the insurer, which are included in the agreed limits of indemnity;
- Any sums due in accordance with the items above in relation to the liability of partners (lawyers, assistant lawyers, mentioned in the insurance policy) in the cases, when they jointly defend the interests of a trustee or defendee.
The insurance is signed on the basis of a proposal-questionnaire duly completed by the proposer. The policy is issued after payment of the insurance premium which is a fixed sum per insured person depending on the chosen limits of indemnity.
In case of a valid claim the indemnity shall be payable to the insured within 14-days’ period after establishment of its grounds and the amount due on the basis of an out-of-court agreement between the parties to the insurance contract and the injured third party. If such agreement is not reached the indemnity will be payable on the basis of an enforced court decision.