Professional liability insurance for professionals working in Portugal

Cover for the advice you give, not a generic risk

Professional liability insurance does not cover “everything that could go wrong.” It covers financial loss caused to a client or a third party by an error, an omission or technically incorrect advice given in the course of your activity — not physical injury or property damage, which are handled by other liability covers.

When the exposure is financial, not physical

For a consulting-type activity, the risk is rarely physical harm. It is the decision that turned out wrong, the deadline that was missed, the report with an error a client relied on. The financial exposure from that mistake can be far greater than the fee the work itself generated — that is the imbalance professional liability cover exists to address.

We compare, you choose

We're an insurance broker registered with the ASF, not tied to a single insurer. We work with a select panel of international insurers — chosen for the contract terms they offer and how they respond to a claim, not for the cheapest premium — and recommend what actually fits your activity. Free, and with no obligation.

Main covers

• Errors and omissions. The core of the cover: a technical error, incorrect advice or an omission that causes financial loss to a client.
• Professional negligence. Failure to meet the standard of care expected of the activity, even without intent to cause harm.
• Legal defence costs. The cost of defending a claim, even an unfounded one, is often among the largest parts of a professional-liability loss.
• Damage to third parties. Financial loss caused to a third party who is not a direct client but relied on the work delivered.
• Loss of documents. Loss of or damage to documents entrusted by the client in the course of the activity.
• Breach of confidentiality. Unintentional disclosure of confidential client information.

Who this is for

Consultants, lawyers, engineers, doctors, architects, accountants and complementary-therapy professionals — any activity where the advice or service provided is, in itself, the product. In several of these professions, professional liability cover is required by the relevant professional body or association; in others it is a recommended, but not compulsory, protection. The exact requirement depends on the activity and should be confirmed with the relevant regulator.

Common mistakes

• Confusing professional liability with public (general) liability. Public liability covers physical injury and property damage caused by accidents on your premises. Professional liability covers the financial loss resulting from an error in the service delivered. They are different covers, and often both are needed.
• Not reviewing the capital as the activity grows. The capital contracted at the start of a consulting activity rarely keeps pace with the growth of the client portfolio or the value of the projects taken on since.
• Not confirming the retroactive date. Many professional liability policies operate on a “claims-made” basis — they respond to claims made during the policy period, even if the error happened earlier. Switching insurer without confirming retroactive cover can leave a gap in exposure.

In Spain

We do not have a dedicated professional liability page for Spain. A Portuguese professional indemnity policy does not automatically extend to work carried out for clients in Spain or to a Spanish establishment, and some Spanish professions set their own insurance requirements. If part of your activity is in Spain, tell us where and for whom you work: we confirm in writing whether the Portuguese policy can be extended or a Spanish placement is needed, and say plainly if it falls outside what we can arrange. For your personal and family liability in Spain, see family liability insurance in Spain.

Related reading

• Lawyers — the Bar’s group policy, top-up cover and foreign clients.
• Doctors and dentists — own clinic, aesthetics and practising in Spain.
• Architects and engineers — Lei 31/2009, site direction and the Spanish LOE.
• Financial advisers and wealth managers — CMVM, CNMV and insurance distribution.
• Real estate agents — the legal minimum and luxury transactions.
• What happens when your consultant makes a €500,000 mistake? — real cases and what to demand from your PI policy.
• Professional indemnity insurance requirements in Portugal.
• Directors & Officers (D&O) insurance — a related but distinct cover for directors and managers.
• Cyber insurance for businesses in Portugal — relevant for firms handling client data electronically.
• Private Clients — if the risk is about your personal assets rather than your professional activity.