Compulsory professional indemnity insurance comes to Italy

The advent of compulsory professional indemnity insurance in Italy is at hand, with new legislation making it a requirement for all recognised members of Italian professional bodies to secure the professional liability insurance cover.

In accordance with the new regulation, not only will individuals need to have business liability insurance cover, but must also inform any and all of their clients of the details of this cover in a letter of engagement prior to undertaking any work for the clients.  The new legislation states that professionals are obliged to take the necessary precautions against professional indemnity insurance claims in order to protect their customers, with practitioners required to disclose the details of the policy at the time of the assignment to the customer.

The new compulsory insurance policy requirements are included in other professional association reforms in Italy.  The deadline for implementation of the new requirements is 12 months from the decree, which was given on 13 September of this year.

The largest professional associations in Italy are thought to have more than one million members, with lawyers and accountants comprising 24 per cent of the total with a combined 240,000 members.

Italian broker Golinucci srl’s chief executive officer, Paolo Golinucci, remarked on the new regulations, stating that it is about making professional indemnity insurance policies compulsory for all professionals in Italy.  The new regulation will result in positive effects not just for the broker but the market in general, Mr Golinucci added.

Insurance providers are offering their services to more than just lawyers and accountants, however. The largest insurers, such as Unipol, Dual, Assicurazioni Generali, Fonsai, Zurich, Chartis, and Lloyd’s, are leaving no stone unturned in their quest to grow their market share.

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