Professional indemnity · Contracts
Your client requires insurance in the contract
Your client in Germany, the UK, the Netherlands or the US has sent a contract that asks for “proof of insurance”, “professional indemnity” or “Berufshaftpflicht”. This page explains what that clause usually means, which limits are common, what a policy does and does not cover, and how a Bulgarian company or a Bulgarian resident can get insured.
INS Center is a licensed insurance broker in Bulgaria (Financial Supervision Commission licence No. 15-ЗБ, register No. 11-696). We place cover with an EU-licensed insurer rated A- (Excellent) by AM Best.
My client asks for insurance — what exactly do they want?
Clients use different names for the same cover. The table shows what each term usually refers to.
| Your client writes | What it usually means | Covered by |
|---|---|---|
| Professional Indemnity (PI) | Claims that your work, advice or service caused the client a financial loss | Professional Indemnity section |
| Professional Liability / E&O (US) | Same as PI | Professional Indemnity section |
| Berufshaftpflicht / Vermögensschadenhaftpflicht (DE) | Liability for pure financial loss caused by professional errors | Professional Indemnity section |
| Betriebshaftpflicht (DE) / Public Liability (UK) / General Liability (US) | Injury to people or damage to property of third parties | Public Liability section (EU territory only) |
| IT-Haftpflicht (DE) | A combination of the two above | Professional Indemnity + Public Liability |
| Employers’ Liability | Claims by your own employees | Employers’ Liability section |
| Cyber liability | Data breaches, hacking, first-party cyber costs | Not available on this page |
Tip: ask your client which lines they actually need. Many standard templates list every type of insurance, even for remote contractors with no employees and no presence in the client’s country.
Which limits do clients usually require?
There is no single standard. In practice:
- Many UK clients ask for at least £1 million of professional indemnity.
- German IT and consulting contracts often ask for €500,000 or more for financial loss.
- Larger corporate and public-sector clients may ask for €2 million or more.
Available limits for professional indemnity: €100,000, €300,000, €500,000, €1,000,000, €2,000,000, €5,000,000 and €10,000,000, for each and every claim. Defence costs are included within the limit, not paid in addition.
Limits are issued in euro. If your contract states an amount in GBP or USD, agree the euro equivalent with your client before you buy.
Claims made in the USA or Canada (with the US/Canada extension) are covered up to $1,000,000, within the overall limit. If a US client asks for more than $1,000,000, this policy does not meet that requirement.
Can a foreigner with a Bulgarian company buy this here?
Yes, if the insured is:
- a company registered in Bulgaria (for example an EOOD or OOD), or
- a person whose habitual residence is in Bulgaria.
Your nationality and the country of your client do not matter. What matters is where the insured risk is located, which under EU law (Article 13, point 13 of Directive 2009/138/EC) is the country of the policyholder’s habitual residence or, for a company, of the establishment to which the contract relates.
If your company is registered in another country, we cannot place this cover for you.
What does the policy cover?
The professional indemnity section covers claims made against you by a third party for a financial loss caused by a wrongful act in your professional activity, for example:
- an error or omission in your work or advice
- a missed deadline that causes your client a loss
- unintentional breach of confidentiality
- unintentional infringement of third-party rights (except patents and trade secrets)
- unintentional transmission of a computer virus, or failure to prevent unauthorised access to third-party data in your care
It also pays the legal costs of defending the claim, within the limit.
The policy can combine Professional Indemnity with Public Liability, Employers’ Liability, Directors’ and Officers’ Liability, Employment Practices Liability and Fidelity. Your quote shows which sections are included and the premium for each.
What does the policy NOT cover?
Read this before you sign your client’s contract.
Liability you accept in the contract. The policy covers your legal liability. It does not cover liability you take on in the contract beyond what you would owe by law anyway, such as indemnities, hold-harmless clauses, contractual penalties or liquidated damages.
Standard exclusions include:
- supply, manufacture, installation or maintenance of products or hardware
- patents and trade secrets
- fines, contractual penalties and punitive or exemplary damages
- bodily injury, and property damage (except where directly caused by a breach of your duty of care)
- losses caused by a hacker, regulatory fines and your own (first-party) cyber costs
- claims or circumstances you knew about before the policy started
For claims brought in the USA or Canada (if this extension is included), cover is capped at $1,000,000 and additional exclusions apply, including bodily injury and property damage, punitive damages, and claims by government agencies.
Not available in the standard wording:
- Additional Insured status for your client
- Indemnity to principal clause
- Primary and non-contributory wording
- Public Liability outside the EU
- Stand-alone cyber insurance
If your contract requires any of these, show this list to your client before signing.
We cannot place cover if:
- your work involves products, hardware or physical installation
- most of your work is done by subcontractors outside the EU
- your contract requires cyber insurance
What should I check in my contract before signing?
- Limit per claim or in the aggregate? Our limits apply to each and every claim.
- Defence costs inside or outside the limit? Ours are inside the limit.
- Currency of the limit (EUR, GBP or USD).
- Jurisdiction. If your client can sue you in the USA or Canada, you need the US/Canada extension. Claims there are covered up to $1,000,000.
- How long must cover continue after the contract ends? Some UK contracts, including public-sector ones, require professional indemnity to be kept for up to six years after the end of the contract.
- Indemnities and penalties you accept in the contract. These are not insured (see above).
- Additional Insured or indemnity to principal requirements. Not available in the standard wording.
How does claims-made cover work?
Professional indemnity is written on a claims-made basis. A claim must be made against you, and notified to the insurer, while the policy is in force.
- Retroactive date. Work performed before the retroactive date shown in your schedule is not covered. In a new policy, this is normally the start date of the policy.
- Renewal matters. If you stop renewing, claims made after expiry are not covered, even for work done while you were insured. The standard wording has no extended reporting period.
- Closing your company? Ask us before you stop the policy.
Excess, tax and fees
- Standard excess: €250 per claim.
- Claims brought in the USA or Canada: €5,000 per claim, including claims costs.
- Bulgarian insurance premium tax: 2% of the premium.
- Fees: your quote shows the premium, the tax and any underwriting and broker fees as separate lines.
How do I prove to my client that I am insured?
You receive your policy schedule and certificate of insurance in English, by email, after the premium is paid. Both show the insured, the period, the sections and the limits.
If your client wants to be named on the certificate, tell us when you reply to our email. We will ask the insurer; it is not guaranteed.
How do I get a quote?
- Fill in the form below. It takes about a minute.
- We send you the product information document (IPID) first, so you can check the main cover and exclusions against your contract. The full policy wording comes with the quote.
- If the terms work for you, reply “Please quote” and we send you a quote, usually within 1–2 business days.
- Nothing is bound until you confirm in writing and the premium is paid.
Related guides
More on insurance your client requires.
Next step
Request a quote
About a minute. We reply by email with the product information document (in English and Bulgarian) first, then the quote.
- Phone
- 0883 990 906 · Viber
- info@inscenter.bg
- Address
- 46 Akad. Stefan Mladenov St., office 13A, floor 6, section A, Sofia
- Opening hours
- Mon – Fri, 9:00 – 17:00
Frequently asked questions
How much does it cost?
The premium depends on your activity, turnover, the share of revenue from the USA and Canada, and the limit you choose. Your quote shows the exact amount.
Can I pay monthly?
Annual payment is standard. Ask us if you need instalments; availability depends on the quote.
Is the policy in English?
Yes. The schedule, wording and certificate are issued in English.
Can I cancel?
With annual payment, you can cancel on 30 days’ notice. If no claim has been made, the premium for the remaining period is refunded pro rata. The policy renews automatically unless you tell us otherwise before the renewal date. Your policy wording prevails.
Do you cover sole traders and freelancers?
Yes, if you are registered or habitually resident in Bulgaria.
I already have a policy from another country. Can I move it?
We can quote a new Bulgarian policy. Check the retroactive date carefully, so that past work stays covered.
Do you help with claims?
Yes, for policies placed through us.
