Insurance or Reinsurance Brokers Professional Indemnity Insurance

A broker can also purchase a public liability insurance policy for damage arising out of their professional activities, as well as an employer's liability insurance policy.

An insurance broker is a natural person authorised for insurance brokerage activities. Pursuant to the Company Act, an insurance brokerage company can be registered as a public limited company or a limited liability company.

Insurance brokerage activities include negotiations with an insurance company related to enabling a future insured to conclude an insurance or reinsurance contract, according to their requests or needs.

An insurance broker's activities include the preparation of insurance and reinsurance contracts and assistance with executing rights from an insurance or reinsurance contract, and especially in handling claims addressed to the insurance company.

Assistance with executing rights from an insurance or reinsurance contract, and especially in handling claims addressed to the insurance company can be provided only by brokers or persons who are authorised for such activities by other legislation.

An insurance broker's authorisation to perform insurance brokerage activities is based exclusively on their employment at an insurance brokerage company.

Factors for determining the insurance premium

The insurance premium is based on:

• the annual commission amount
• the cover limit (sum insured)
• the scope of cover (deductible)
• other factors as per Premium Tariff.

If the broker does not perform activities related to the preparation of insurance or reinsurance contracts (advice) and assistance with executing rights from an insurance or reinsurance contract, and especially in handling claims addressed to the insurance company, and does not wish to include cover for such activities, there is a premiun discount.