This type of insurance covers liabilities due to negligence or failure of the insured that causes damages to third parties, such as a doctor who accidently left scissor within the patient’s abdomen; a lawyer who forgot the court appointment, causing the case to lose; an accountant who incorrectly audited the accounts for the merger and acquisition; a designer who miscalculated the plan causing the building to collapse/inadequate recess space as required by the law; an engineer who failed to supervise the construction causing the incorrect piling position, etc.

This type of insurance can be arranged both for individual and for the company. If arranged for the company, all employees will be covered as long as they work under the said company. (It will not cover the work under personal name).