LIABILITY INSURANCE

Liability insurance is designed to protect your property as a whole from claims by third parties. Your property is not physically insured under this policy, but it is protected from being reduced, as the insurer will pay out compensation to a third party on your behalf. This insurance protects your economic interest.

Extra-contractual liability

The Mandatory Relationship Act as a basic regulation clearly prescribes that if someone causes harm to someone else, they are obliged to reimburse it, if they do not prove that the damage was caused without their culpability.
By liability for the damage under the subjective criterion, we mean ordinary negligence. Culpability is not even established for damage by things or activities that result in increased environmental hazards, because in such damages one is liable irrespectively of guilt. (Criterion of Objective Responsibility)

DANGEROUS OBJECTS OR DANGEROUS ACTIVITIES
Dangerous objectsare understood to mean any thing that, by its purpose, features, position, location and mode of use, or otherwise represents an increased risk of harm to the environment, and should therefore be supervised with increased attention.
An activity represents an increased risk when, in its normal course of action, already by its technical nature and the way of doing it, the lives and health of people or property can become endangered, so that this threat requires increased attention of persons performing this activity, as well as the persons who come in contact with it.

Damage by dangerous objects is the responsibility of their owner, and damage from dangerous activity is the liability of the person performing the activity.

Within the scope of non-contractual or delinquent responsibilities, apart from the aforementioned subjective and objective responsibilities, we distinguish own responsibility and responsibility for the other (Employer for Employees), shared and solidary responsibility (the responsibility of multiple persons for the same damage).

Differences between contractual and tort (non-contractual) responsibilities:

  • For the emergence of contractual liability, the prerequisite for business ability of the one that caused damage is required, while for the emergence of non-contractual liability tort ability is sufficient
  • Under contractual liability, the one that caused damage is responsible for the damage caused, but also for the fulfilment of the original obligation, while in the case of extra-contractual liability he is responsible only for the damage caused
  • The rules of contractual liability are predominantly of dispositive nature, which allows the contracting parties to expand, limit, and even exclude liability. The emergence of an extra-contractual obligation is regulated by the cogent (mandatory) regulations, so the validity is limited only to the change and termination of the liability relationship
  • The damaged party in contractual liability may, as a rule, only be a lender and, in the case of non-contractual any person, to whom the damage is caused

The Insurance Policy of EXTRA-CONTRACTUAL LIABILITY provides insurance coverage for insured persons for damage done to objects of third parties due to destruction or damage as well as damages for death, injury to health or bodies of third-party. It covers the responsibility of the insured person from possessing objects, from a legal relationship or from a certain property as a source of danger. In addition to the aforementioned, the policy also covers the so-called pure property damage, i.e. damage caused by neither material damage, injury or pure financial loss. In addition to the payment of damages to a third party injured, the Extra-Contractual Insurance Policy also provides you with other benefits:

  • conducting a court case by the insurer on behalf of you if the injured person exercises the right to compensation for damages in litigation,
  • compensation for all costs of litigation, even when the claim for damages has not been founded, even when those costs with the amount of damages exceed the contracted amount of cover in the policy,
  • examination of the liability of the insured for the incurred damages, if it is necessary for compensation of damage,
  • giving statements in the name of the insured person which he finds it useful to satisfy or defend against an unfounded or excessively high claim for damages.

The insurance policy are contracted with coverings of at least HRK 100,000 per harmful event, while in practice, we contract larger coverings of HRK 500,000 or HRK 1,000,000 kuna per harmful event. The premium is determined by the total annual revenue of the company and the type of business being carried out.
The number of harmful events within the duration of insurance policy is not limited, and the participation of the insured can be contracted at a certain amount for any damages, thereby reducing the insurance premium. In addition to the coverage of non-contractual liability to third parties, the policy can be contracted to a separate amount of coverage and coverage to its own employees, whereby the premium also depends on the total number of company employees.
Territorial coverage is the territory of the Republic of Croatia, unless the policy is not otherwise contracted and can be extended to the whole world.
Contact us, contract your extra-contractual liability policy today and avoid unplanned costs for third party compensation.

Product liability insurance

This insurance policy provides you with a complete legal liability cover for material damage or bodily injury caused to third parties due to the use of a faulty product. The cover provided under this policy is often excluded from the general liability policy cover.
For complete protection from liability, we recommend that you purchase both policies as an insurance package, in order to obtain a comprehensive cover against possible claims by third parties.
The Obligations Act stipulates that a manufacturer who launches a product is responsible for damage caused by the product’s defective/faulty product, regardless of the culpability. This refers to property damage caused by death or bodily injury, as well as damage caused by the loss or damage incurred to an item in the insured’s possession other than the faulty product, if this item is normally intended for personal use and if the insured has used the item mainly for that purpose.
A product is any movable property, as well as a separate element built into any movable or immovable property.

Solicitors professional indemnity insurance

The subject of insurance is a solicitor’s liability for damage caused to third parties while performing their professional duties. Insured events include each individual case of failure to provide legal protection or error causing damage to third parties.
A failure or an error is considered to be known when the insured has established or found out about it before the submission of a claim by the damaged party or an announcement of such a claim being submitted.
The insurance also covers liability on the part of trainee solicitors and other staff, as well as a solicitor’s private liability outside the scope of their practice, at an additionally agreed and paid premium.
The professional duties of a solicitor are performed as an autonomous and independent practice and include providing all types of legal aid to natural and legal entities for the purpose of realizing and protecting their rights and legal interests.

Types of legal protection include notably:

  • provision of legal advice
  • creation of documents (contracts, wills, statements, etc.)
  • composing claims, appeals, proposals, requests, petitions, special legal remedies and other letters
  • representing parties.

A third party is a person who is not a subject of the insurance contract, i.e. a person whose liability is not covered by the insurance, and who is not the insured’s employee.

Notary public professional indemnity insurance

This insurance policy covers professional indemnity for notary public assessors, interns, deputies and acting notaries public.
The Office of notary public includes official creation and issuing of public documents on legal acts, statements and facts which serve as a basis for entitlements; official certification of personal documents, keeping custody of documents, money and valuables for the purposes of their transfer to other persons and authorities, and performing procedures stipulated by the legislation, as per court orders or other public authority orders.
The Office of notary public also includes performing other activities stipulated by the Notary Public Law.
The Office of notary public is a public office performed by notaries public as autonomous and independent holders of that office and persons of public confidence. Notaries Public perform their services as their exclusive activity during the period for which they are appointed.
Notarial deeds are documents on legal transactions and statements composed by notaries public (notarial acts), minutes on legal acts performed or attended by notaries public (notarial minutes) and certification of facts witnessed by notaries public (notarial certificates).
This indemnity insurance also covers assessors and trainee notaries public, as well as persons employed by a notary public agency.
If a notary public has been appointed as a deputy or an officer in charge, they are not required to take out additional insurance.
Basic sum insured per insured event amounts to HRK 400,000. A sum insured above HRK 400,000 may also be negotiated by the insured.

Professional indemnity insurance for auditors and auditing companies

The subject of insurance is the liability of auditing companies and independent auditors for damage caused to third parties while performing auditing activities. This type of insurance covers the liability of the certified auditor (company or independent) for damage caused to a legal entity based in the Republic of Croatia. Insured events include each individual case of failure to provide legal protection or error causing damage to third parties.
A failure or an error is considered to be known when the insured has established or found out about it before the submission of a claim by the damaged party or an announcement of such a claim being submitted.

Sum insured
For damage that an auditing company or an independent auditor may cause by performing auditing activities, a minimal coverage amount per loss event is HRK 300,000.00. For damage that an auditing company may cause by performing audits of banks, pension and investment funds and insurance companies, a minimal coverage amount per loss event is HRK 3,000,000.00. For damage that an auditing company with only one certified auditor employed may cause by performing auditing activities, a minimal coverage amount per loss event is HRK 100,000.00. The above mentioned insurance amounts represent coverage limits stipulated by the Auditing Law.

Shipping agents professional indemnity insurance

A shipping contract stipulates the obligation of a shipping agent to enter, in their name and on the behalf of their client, a contract of carriage and other contracts required for the transport, and perform other standard activities, and the obligation of the client to pay a fee determined for such services.
The shipping agent is obliged to warn the clients about any issues in their orders, especially those that may expose them to higher costs or damage. This type of insurance policy covers your liability for any material damage occurring in the execution of a shipping contract, into which you enter as part of your regular activity.
The shipping agent is obliged to insure the shipment only if stipulated by the contract. If the contract does not specify which risks are to be insured, the shipping agent is obliged to insure the shipment against standard risks.
If the shipment is not packaged and ready for shipping, the shipping agent is obliged to warn the client about such issues, and if the wait for the client to remove such deficiencies could cause them damage, the shipping agent is obliged to remove those at the client’s expense.
The shipping agent is obliged to follow instructions on the direction of shipping, means and manner of transportation, as well as other instructions as may be received from the client. If it is not possible to follow some of the instructions contained in the order, the shipping agent is obliged to request new instructions, and if there is no time or it is impossible to do so, the shipping agent is obliged to act in the client’s best interests. The shipping agent is obliged to report to the client any deviation from the order without delay.
If the client has not determined the direction, means or manner of transportation, the shipping agent shall determine those in accordance with the client’s best interests in any given case. If the shipping agent has deviated from the client’s instructions, they will be responsible for any damage thus incurred, even in the event of force majeure; unless it can be proven that the damage would have occurred even if the given instructions had been followed. If the order contains explicit or implicit authorization for the shipping agent to entrust the execution of the order to another shipping agent or if this is undoubtedly in the client’s best interests, the agent is only responsible for the choice of another agent, unless the agent has also assumed the responsibility for the activities of the other agent.

The insurance premium is based on:

  • the annual income from shipping activities
  • the cover limit (sum insured)
  • the scope of cover (deductible)

The shipping agent’s liability is limited to damage up to HRK 550,000 per loss event in relation to a single shipping order or shipment. The insured’s liability for the compensation of lost profit is not covered by this insurance

Marina operators liability insurance

This insurance policy covers the insured’s liability for damage caused in their role as a marina operator, as stipulated by the Obligations Act and Law on Maritime Property and Marine Ports. This liability includes compensation to the owner or third party for any damage caused to their property, as well as liability for death and bodily injuries.
Each type of marina, depending on the type of services provided, must satisfy minimal requirements with respect to construction, furnishing and equipment, as stipulated by the relevant Marina Classification Rules and other special regulations.
A marina which does not satisfy the minimal requirements stipulated by the relevant type-specific Marina Rules cannot be a subject of insurance.
The insurer is obliged to pay out compensation up to the sum insured stipulated in the policy for damage caused by the insured to third parties arising out of their registered activity, for damage caused by a single loss event, and costs of determining their responsibility.


The insurance covers damage to a vessel during its stay at a marina:

  • for the period of agreed safekeeping and maintenance
  • while outside the boundaries of the marina for the execution of works under the insured’s responsibility, including transportation to that location by sea or land
  • for the damage occurring during test drives within a 10 nautical mile radius of the marina
  • on dismantled parts of the vessel, which was received into custody and maintenance within the boundaries of the marina, excluding the risk of theft [except for burglary, which is covered by the policy] or inexplicable disappearance of that part
  • damage arising out of the insured’s service centre activities, regardless whether the vessel was received for safekeeping or not
  • damage incurred by burglary on the vessel while in the marina waters, or on its territory for safekeeping and maintenance, provided that the items were in an enclosed and locked space in the vessel.

The insurance may cover damage to the marina, at an additionally agreed and paid premium:

  • on third party property, arising out of works which are part of the marina activities
  • due to third person death or bodily injury within the boundaries of the marina
  • as a result of pollution by fuel or lubricant leakage caused due to the fault of the insured, where the insurance covers only cleaning costs for the vessels received for safekeeping and maintenance, as well as beach cleaning costs.

The premium rate is applied to the total annual income from the insured’s activity which does not include any income from catering and commercial services.

Bankruptcy administrators professional indemnity insurance

This policy covers the liability of bankruptcy administrators and temporary bankruptcy administrators for damage caused to all participants in the bankruptcy proceedings, in the case of culpable violation of their responsibilities stipulated by the Bankruptcy Law . A bankruptcy administrator can only be a solicitor, a solicitor’s firm employing a financial/economic advisor or a member of a public company registered by the court for performing bankruptcy administration activities.
The activities of the bankruptcy administrator are overseen by the bankruptcy judge, council of creditors and assembly of creditors, authorised to request information or reports on the state of affairs or business operations at any time.
Upon conclusion of the administration proceedings, the bankruptcy administrator shall, on the debtor’s behalf and for the account of the bankruptcy estate, cash in the debtor’s assets and use thus collected funds to settle the costs of the bankruptcy proceedings, and pay the remaining funds into the national budget. The bankruptcy administrator submits reports on all performed activities to the bankruptcy judge.

Factors for determining the insurance premium.

The insurance premium is based on:

  • the bankruptcy estate size
  • the receivables to bankruptcy estate ratio
  • the cover limit (sum insured)
  • the scope of cover (deductible)
  • other factors as per Premium Tariff

The basic sum insured is based on a decision by the Croatian Insurance Bureau and amounts to HRK 335,000 per loss event and the cover is valid only in the Republic of Croatia.
A separate insurance policy may be taken out to cover insured events occurring outside the Republic of Croatia. In such cases, conditions and premium are determined by the Company Management.
With the appropriate correction of the premium, it is possible to conclude an insurance policy with a lower or higher sum insured.
The basic premium also includes liability for pure financial loss of up to 25% of the agreed sum insured. A higher percentage for pure financial loss insurance can also be purchased with the relevant premium surcharge.

Real estate agents professional indemnity

A real estate agent is an authorised company or sole trader which fulfils the conditions for performing real estate agent’s services, including liaising with the client and third parties, negotiating and preparing legal contracts for a particular property, especially concerning purchase, sale, exchange, rent, lease, etc. Euroherc insurance has developed a special liability insurance product for real estate agents which includes cover for public extra-contractual third party liability, as well as real estate agents professional indemnity insurance, up to the legal cover limits. The insurance premium is calculated on the basis of the company’s total annual income and number of employees.
In addition to material damage and bodily injury, this product also covers financial damages to third parties [pure economic loss].
As real estate agent’s services involve high value transactions, it is reasonable to expect that such activities are performed by persons with an appropriate level of expertise, and their liability in the case of damage is stipulated by the legislators.
Real estate agents are obliged to take out and extend their liability insurance with an insurer in the Republic of Croatia, against damage which they may cause to the client or third parties while performing agency services.
The lowest sum insured for damage caused by an agent in performing their professional services may not be below HRK 200,000.00 per loss event, or HRK 600,000.00 for all claims within one insurance year.

Public commission agents professional indemnity

This type of policy provides protection from the risks of liabilities for damage the insured may cause to parties in distraint proceedings, if they have culpably violated any of their responsibilities stipulated by the Distraint Law. In accordance with the rules of professional conduct, the commission agent is obliged to take over, classify, keep, insure, maintain and display movable property, give information thereon, advertise its sale, sell it and handle thus received financial assets.
Movables are dispatched to the commission agent as per bailiff’s order.
In specific matters of distraint over movable property, the public commission agent’s activities are supervised by a distraint arbiter who is in charge of the proceedings in that particular matter. Insured events under these conditions include a failure or error on the part of the insured, in relation to performing their activities conscientiously and accurately, i.e. expertly and professionally, resulting in damage claimable by the injured party. An insured event has occurred when the insured has culpably violated any of their responsibilities stipulated by the Distraint Law.
This type of insurance does not cover liabilities for the failures or errors which were known at the time of entering into insurance contract or could not remain unknown to the parties involved in the proceedings. Failures or errors are considered to be known if the insured has established or found out about them before the submission of a claim by the damaged party.
In case of doubt, the failure or error are considered to have happened on the day when measures should have been taken in order to prevent the damage.
Sum insured, reduced by the agreed deductible, is the upper limit of the insurer’s obligations per insured event, regardless of the number of damaged parties, and amounts to HRK 500,000, unless otherwise stipulated by the contract [minimal sum insured]. The insurance contract is valid if, at the time of loss occurrence, the public commission agent had a valid work permit issued by the relevant authority.

Insurance or reinsurance brokers professional indemnity insurance

The subject of insurance under this policy is the professional indemnity for damage caused by insurance or reinsurance brokers while performing their professional duties. 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

Travel agents professional indemnity insurance

Pursuant to the Tourism Law, a travel agent organizing package holidays is obliged to take out liability insurance for damage caused to passengers by failure to meet obligations or by partially or inconsistently meeting obligations in relation to the package holiday. A travel agents professional indemnity insurance policy is concluded for a period of 1 year, based on the number of passengers, desired territorial cover and sum insured. This policy is normally combined with a general business liability insurance, whereby the travel agent obtains total protection against possible claims based on their extra-contractual or professional liability.

A travel agent organizing package holidays is obliged to secure a guarantee fund for each package holiday with a bank or insurance company for the purposes of compensation payout:

  • of the price paid for the travel, if the travel agent’s services cannot be rendered due to payment inability or bankruptcy
  • of the costs incurred due to payment inability or bankruptcy of the travel agent responsible for returning the passengers to their point of departure.

A travel package guarantee policy can be purchased as a separate policy or as part of a comprehensive cover for package travel organizers, with a premium based on the cover limit and total turnover of the organized package holidays.
Other tourist services have insured their users against accidents.
Tourist services including sports, recreational or adventure activities (skiing, diving, surfing, horse-riding, hiking, rafting, canoeing and other similar activities, paragliding, bungee-jumping, etc.) are obliged to insure their users against accidents.

A legal entity will be required to pay a fine of HRK 8,000.00 to 100,000.00 if:

  • they organize travel [package holiday or trip] or provide passenger transport services, failing to use means of conveyance in which passengers are insured against accidents and baggage loss and damage, and catering facilities in which service users are insured against accidents
  • they fail to secure a guarantee fund for each travel package with a bank or insurance company, or if, at the time of payment for the package holiday a passenger is not issued with a certificate of guarantee which enables them to claim damage compensation directly
  • they fail to purchase liability insurance for damage caused to passengers by failure to meet obligations or by partially or inconsistently meeting obligations in relation to a package holiday

Marine recruitment agents professional indemnity insurance

A marine recruitment agent is obliged to ensure that a marine employee is in possession of an individual employment contract compliant with the relevant legislation and satisfying the minimum standards determined by the relevant international agreements and the national collective agreement. They must also have a consistent and maintained quality assurance system in accordance with international ISO standards, which covers marine recruitment activities and which must be assessed by an independent certification institution. The subject – matter insured is liability for damage caused by the insured to a marine employee due to negligence in performing their professional duties. The recruitment agent is not allowed to charge the marine employee, directly or indirectly, for their recruitment services.
An insured event can include more loss occurrences which can be the result of a single cause, regardless of the number of damaged parties. It is understood that an insured event has occurred when a failure or error occurred in the performance of professional marine recruitment activities for which the insured is responsible pursuant to these contractual provisions. A failure or error are considered to be known when the insured has established or found out about them before the submission of a claim by the damaged party. In the case of doubt, it is assumed that the failure or error in the performance of marine recruitment activities occurred on the day when a particular activity should have been performed or not performed, in order to prevent damage.

Tax consultants professional indemnity insurance

This insurance policy covers the liability of a tax consultant for damage caused to a person (party) based in the Republic of Croatia. Tax consultancy is an activity which, in accordance with the legal, economic, tax and accounting systems of the Republic of Croatia, ensures a reliable and accurate application of tax regulations by tax payers.
Insured events include each individual case of failure to provide legal protection or error causing damage. A failure or an error is considered to be known when the insured has established or found out about them before the submission of a claim by the damaged party or an announcement of such a claim being submitted.
Tax consultancy is a business activity that includes providing advice on tax issues, representation in tax proceedings before tax authorities and creation of tax returns. In addition to tax consultancy activities, tax consultants may also perform accounting and financial reporting services, and other similar services. Tax consultancy includes representation before tax authorities and expertise following a decision by a tax authority. A tax consultant has the authority and obligation to advise their client on all tax matters, assist them in the creation of tax returns and represent them in tax proceedings before tax authorities, participate in tax trials before courts, oversee the accuracy of tax and accounting records, kept for the purposes of creating tax returns and other tax documents.
Tax consultancy services are usually stipulated by a written contract.

Expert witness professional indemnity insurance

In accordance with the Civil Procedure Rules – which stipulate that candidates competing for the position of a permanently appointed expert witness must first submit evidence of a concluded compulsory liability insurance policy, for the compensation of claims arising out of their performance of the professional duties as a permanently appointed expert witness, with the lowest sum insured of HRK 200,000.00 – Euroherc osiguranje offers appropriate insurance cover for expert witnesses in all sectors. The subject – matter insured is professional indemnity for damage caused by the insured [a permanently appointed expert witness] to parties in the proceedings while performing their professional duties, if these are performed irresponsibly or inattentively. Expertise can be performed in court and outside the court. Permanently appointed expert witnesses are obliged to keep all information they collected while performing their professional duties confidential.
The client is a legal or natural entity, a court or an institution, requesting the expertise, i.e. hiring and paying for the expert’s services.
A permanently appointed Expert witness is a holder of a valid document certifying their appointment to the position of a permanent expert witness by the president of the relevant county or commercial court, i.e. a person invited to present before a court or a client their current observations (findings) and opinions on facts which may be relevant in determining the authenticity of the allegations being investigated.
Expertise encompasses an array of various expert activities and knowledge which are performed for the purposes of determining and explaining facts. As a rule, expertise is performed by a single expert, unless the court decides that the expertise is complex, in which case two or more experts may be appointed. Experts are primarily selected from the ranks of permanently appointed expert witnesses for a particular type of expertise. Expertise can also be entrusted to an expert institution (hospital, university, etc.), and if there are special institutions for particular types of expertise (e.g. forged money expertise), expertise will primarily be entrusted to those institutions, especially in more complex cases.
The sum insured is the upper limit of the insurer’s obligations per insured event, regardless of the number of damaged parties, and amounts to HRK 200,000, unless otherwise stipulated by the contract (minimal sum insured). The Aggregate Limit is the upper limit of the insurer’s obligations for all insured events realised within a single insurance year.

Aircraft owners/operators professional indemnity insurance

Extra contractual liability to third parties

If contracted coverage for liability to third parties under these Terms is active and the additional surcharge has been paid, the insurer will indemnify third parties for:

  • death or personal injury and damage to health
  • loss or damage to material things,

by the aircraft in flight, persons, things that fell or were thrown from the aircraft in flight, unless it is proven that the aircraft in flight, persons or things that fell were not cause of the damage. According to these terms the insurance shall also apply to damage caused by the very passage of the aircraft (e.g. Damage caused by sound, breaking the sound barrier, etc.).

Liability for passengers

By choosing voluntary insurance of liability for passengers, the insurer will compensate for any damage to persons who are passengers in the insured aircraft as follows:

  • death or personal injury and damage to health
  • loss or damage to material things and items that passengers carry with them on board (hand or checked baggage of passengers).

In case of loss or damage to items the value of the items is determined by the market price of items of the same type, quantity and characteristics at the place and time of submission to the insurer. The insurance compensates for damage and impairment losses of damaged items.

Common coverage limit liability for passengers and third partie
Limit of coverage (insurance amount) from the insurance policy is the maximum liability of the insurer per accident, regardless of the number of injured parties. The aggregate limit represents the upper limit of the Insurer’s liability for all adverse events and victims during the validity of the insurance policy.

Responsibility to the crew of the aircraft (flight and cabin crew)
The crew (flight and cabin) of the aircraft are the persons who were ordered by the aircraft operator to perform certain tasks in the aircraft during flight time and are considered to be insured to a common limit, unless the policy states otherwise.
Cabin crew – are crew members of the aircraft (not flight crew members) who perform work assigned to them, in the interest of passengers’ safety, by the operator or pilot.