COMPULSORY INSURANCE OF PROFESSIONAL RESPONSIBILITY OF THE LAWYER IN GERMANY

In Germany, a lawyer is obliged to conclude a contract of compulsory professional liability insurance to cover the risk of liability for financial losses that may arise in connection with his professional activities, and to resume its action during the term of the permit.

The insurance shall be in an insurance company that is authorised to conduct its activities on the territory of the country, on General terms of insurance, pursuant to the Law on insurance supervision and apply to these financial losses, for which a lawyer is responsible in accordance with § 278 or § 831 of the Civil code.

A contract of insurance must provide insurance coverage for any individual breach of duty, the consequence of which could be a presentation to a lawyer for the legitimate claims of responsibility from the point of view of civil law; it may be agreed that all breaches of duties in the execution of one order will be treated as one insured event, regardless of whose behaviour has become a cause: a lawyer or performed by the assistant.

The insurance contract may be liable in the following cases:
1. for claims regarding compensation losses resulting from a deliberate breach of duty;
2. for claims regarding damages that result from the activities through offices and offices in other States;
3. for claims regarding damages that result from activity in connection with the provision of advice and work on non-European law;
4. for claims regarding damages that result from the activities of a lawyer in non-European courts;
5. for claims for damages in connection with the thefts, which were committed by employees of the lawyer, his relatives or associates.

The minimum insurance amount is 250 000,00 euros for each insured event. Payments of the insurer for all damages caused during one insurance year may be limited to four times the amount of the minimum insurance amount.