Professional indemnity insurance policy

All intermediaries, be they natural or legal persons, registered under sections A, B or F of the register, who intend to pursue insurance and reinsurance distribution activity on the Italian territory and in the other member states of the EEA are required to take out a professional indemnity insurance contract. The intermediaries included in the List enclosed to the Register which apply for registration of their collaborators under section E of the Register are also required to take out a professional indemnity insurance contract.

The professional indemnity insurance contract shall be taken out with an undertaking authorized to the pursuit of class 13 - General liability referred to in article 2 (3) of legislative decree no. 209/2005, or with a foreign undertaking licensed to pursue that activity under the right of establishment or the freedom of services in the territory of the Italian Republic. It may also be concluded by way of coinsurance.

The amounts of insurance cover shall be at least:

• €1,300,380 for each claim;
• €1,924,560 per year in aggregate for all claims.

In case of contracts envisaging cumulative covers, the above minimum amounts shall be referred to each intermediary seeking registration under sections A, B or F.

In case of companies pursuing both insurance and reinsurance business the overall annual amount of cover must be broken down according to each activity.

The contract shall take effect on the date of registration and shall expire on 31 December. Annual contracts shall expire on 31 December of the year of registration and may be renewed each year.

The contract must fulfil the following minimum requirements:

1. it must guarantee compensation for damages caused to third parties in the pursuit of distribution business arising from the intermediary’s professional negligence and misconduct or from the professional negligence, misconduct and infidelity on the part of its employees, collaborators or any other persons for whom the intermediary is liable under the law, including the undertakings registered in section E and the natural persons, even if not registered in the same section. As regards companies registered under section A, B or F, the insurance policy shall also cover legal representatives and managing directors and general managers – if any. Clauses limiting or excluding this cover shall not be allowed;
2. it must cover the whole amount of damages caused when pursuing distribution business, even if they are reported in the three years following the termination of effect of cover;
3. any deductible or excess may not be enforceable by the undertaking against third parties, to whom damages must be paid for in full up to the amounts of cover; the undertaking shall maintain its right of recourse against the policyholder;
4. it must cover the territory of all the EEA Member States;
5. if the intermediary pursues business relating to supplementary pension plans, insurance shall also cover this activity.

The intermediary shall notify IVASS of the conclusion of the professional indemnity insurance contract:

• at the moment of their registration in sections A, B or F of the register;
• in case of an intermediary already registered in sections A, B or F but not operating, by subsequent notice.