IS PROFESSIONAL LIABILITY INSURANCE WORTH HAVING?
Every day on construction sites and in industrial facilities, we face challenging tasks with significant risk potential: pressure-tested welds, heavy piping systems, and work in confined spaces. What happens if unexpected damage or injury occurs during your work? The answer is professional liability insurance, which protects you and your business from the financial consequences of unforeseen events.
1. What Is Professional Liability Insurance?
Professional liability insurance covers damage caused in the course of performing your profession. It applies when:
- Installation work damages valuable equipment.
- A weld unintentionally burns through a critical component.
- A colleague or third person is injured during tool handling.
Without this insurance, you would have to pay for such damages out of your own pocket, which can jeopardize your business and personal finances.
2. Why Is It Worth Having This Insurance?
Protection of assets and finances
Repair or replacement costs can reach tens or even hundreds of thousands of euros.
The insurer covers losses within the agreed limit.
Handling legal claims
If a client raises a liability claim, the insurer provides legal representation.
Competitive advantage
Many major projects require proof of insurance.
Clients see that you take risk management seriously.
Peace of mind
You can focus on your work without stress from legal or financial consequences.
3. What Does Professional Liability Insurance Cover?
- Property damage: machinery, buildings, technology.
- Personal injury: harm caused to colleagues or third parties.
- Consequential financial losses: production interruptions, potential lost profit.
- Legal costs: court fees, legal counsel.
Important exclusions
Insurers typically do not cover damages caused by:
- Working under the influence of alcohol or drugs.
- Intentional violation of regulations.
- Work performed outside the agreed scope or contract terms.
A common misconception among workers is that liability insurance covers rework or additional costs caused by poor workmanship. This is not included in standard policies. The insurance covers accidental damages, not quality-related complaints.
4. How to Choose the Right Insurance?
Coverage limit
A minimum of €100,000 per incident is recommended.
Deductible
Lower deductibles increase the price but reduce your financial exposure.
Territorial coverage
If you work in the EU (Sweden, Austria, Germany), ensure your policy covers international projects.
Additional services
Such as legal assistance or claim advisory.
5. What To Do in Case of an Incident?
- Immediately stop work and secure the site.
- Document the damage: photos, handover protocols.
- Notify the insurance company within the required timeframe.
- Cooperate with the investigation and provide all necessary documents and statements.
6. Professional Insurance and MAXX CC
At MAXX CC, we recommend that all our installers, welders, and pipefitters arrange professional liability insurance before being deployed to any project. We will gladly assist with selecting a suitable policy from trusted partners and help with all required documentation.
Summary
- Professional liability insurance protects your finances and reputation.
- It covers property, health, and financial damages, including legal defense.
- Choose a policy with adequate limits and proper territorial coverage.
- Always document incidents and notify the insurer promptly.
Do not leave your work exposed to unnecessary risk—secure your professional insurance and stay fully focused on your job.
— MAXX CC – We Weld Your Future