Legislation

Professional Civil Liability: the Insurance Every Company Needs

Who must contract it, what it covers, and why its absence directly exposes directors. Includes complementarity with D&O.

HEXA20 May 20251 min read

In an increasingly litigious business environment, Professional Civil Liability insurance has stopped being a choice — it has become a strategic necessity for any organisation that provides services or technical advice.

What it covers

The Professional Civil Liability policy protects the company (and, in some cases, its professionals individually) against legal proceedings arising from:

  • Errors, omissions or professional negligence in the exercise of the activity
  • Poor technical advice causing harm to clients or third parties
  • Breach of confidentiality or misuse of information
  • Defamation or infringement of intellectual property rights

It covers both the compensation paid to the harmed third party and, critically, legal defence costs — which can easily exceed the compensation itself in prolonged proceedings.

Who must have it

In Angola, several professions and sectors have this coverage as a regulatory, contractual or best-practice requirement:

  • Law firms, accounting firms, auditors
  • Engineering, architecture and consulting firms
  • Clinics and health professionals
  • Technology companies providing technical services to clients
  • Brokers, agents and financial advisors
  • Companies contracting with the Public Administration

The cost of not having it

A single unresolved lawsuit can compromise the company's financial health. Worse: the absence of adequate coverage directly exposes directors and managers, who may answer with their personal assets in cases of serious negligence.

For specific director protection, a complementary policy exists — D&O (Directors & Officers) — frequently arranged together.

How to size correctly

The sum insured should reflect three variables: the size of typical company contracts, exposure to international clients and the sector's risk profile. HEXA conducts this analysis at no cost and presents comparative proposals from the main insurers in Angola and the international (reinsurance) market. Request your proposal.

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