By decree no. 22 September 2016, published in the official gazette on 11 October 2016, the minimum requirements of the mandatory PI insurance for lawyers have been approved. The main minimum requirements are summarized below. In particular, the mandatory PI policy for lawyers shall cover:
- Any kind of damages, including pecuniary and non-pecuniary damages, indirect, permanent, temporary and future damages
- Gross negligence of the insured as well as the negligence, gross negligence and willful misconducts of the insured's collaborators
- Claims from clients and third parties in general
- Claims arising from the loss of documents, money, securities etc
- The joint and several liability of the Insured with others, without prejudice of the insurer's recourse action
In addition, the Policy:
- Shall provide for an unlimited retroactive period
- Shall provide for a discovery period of no less than 10 years in case of cessation of the activity of the insured during the policy period
- Shall not provide termination clauses in case of notification of claims and/or payment of indemnity
The minimum limits vary depending on the turnover/number of professionals and namely from €350,000 each and every and in the yearly aggregate (in respect of a turnover not exceeding €30,000) to €5 million each and every and €10 million in the yearly aggregate (in respect of firm of more than 10 professionals).
Such figures shall be increased by 25% as per article 1917 for the purpose of covering the insured's defence costs.
The new provisions will come into effect on 11 October 2017.