FAQ – 43 Questions, Straight Answers

Insurance that, under its terms, responds when your work or business causes damage to someone else – the insurer assesses and settles the injured party's claim, so your own assets don't have to.

Public (general) liability covers personal injury and property damage caused to others during operations – for example, a painter's ladder breaks a shop window. Professional indemnity covers loss arising from a professional error, often a pure financial loss – for example, an accountant's mistake results in a fine. Many businesses need both; for details: the article on types.

Cover for damage caused by a manufactured or distributed product – the chain runs from manufacturer through importer to distributor, webshops included. A separate article covers it: product liability.

Covers claims for damages brought against the company over an employee's workplace accident – this is not the same as accident benefits paid to the employee; the two complement each other: the article on employer's liability.

Typically not – liability insurance is for damage caused to others. Damage to your own equipment, stock or premises is the territory of property insurance (vagyon.biz); the dividing line is explained in own damage vs. damage caused.

Yes – a claim doesn't depend on company size, and a serious claim can wipe out a one-person business's reserves. A separate article addresses the “I'm too small for this” myth: do I need liability insurance.

The policyholder is the party that signs the contract and pays the premium – this can be the business itself, but sometimes a parent company or a client. The insured is the party whose liability the cover applies to, i.e. whose activity could cause damage. In practice the two are usually the same company, but in project- or group-level setups they can differ – it's worth clarifying the roles before signing: policyholder and insured article.

No – and a straightforward site says so. Exclusions and a deductible exist in every policy: typically, intentional damage, extra liability taken on by contract, or fines fall outside cover. The map of exclusions goes through them honestly.

It depends on the policy terms: some policies typically cover liability for a subcontractor's work, others exclude it or require an extra premium. In a main contractor–subcontractor chain, this is one of the most important points to clarify: the supply-chain article helps.

It depends on the territorial scope: some policies cover Hungary, others Europe or worldwide – typically on different terms. Before taking on a foreign order, it's always worth checking this: territorial scope article.

Typically not – damage caused by a motor vehicle is covered by compulsory motor third-party liability insurance (MTPL), which is the territory of kotelezo.biz. On the dividing line: liability insurance vs. MTPL.

No – private individual liability (for example, a leak from your flat damaging a neighbour) is typically an add-on to home insurance, the territory of lakas.biz. Business cover and private cover are two separate worlds: the private individual liability article.

Data protection and cyber is typically a separate product (cyber insurance), not part of classic liability insurance – though the two do touch. On the dividing line, factually: data protection–cyber boundary article.

This is one of the most common misunderstandings: with intentional damage, the insurer is released from its obligation to pay under almost every policy (and it is the insurer that has to prove intent), but how gross negligence is treated varies by policy – some cover it to a limited extent, others allow a narrower scope. It's worth knowing where that line sits before anything happens, not after: intent and gross negligence article.

Often yes, but it's not automatic: the insurer provides cover for the activities declared in the policy, and an undeclared second trade can cause problems at claim time. For businesses with several strands, it's worth checking item by item that every activity is listed on the policy: multiple trades, one business article.

Under the rules of the Labour Code (Mt.) on temporary agency work, the user company is liable for damage caused by an agency worker to a third party, in accordance with the rules on liability for damage caused by an employee; so the client who suffered the damage can turn to the user company, and it is primarily the user company's liability insurance that may come into play. For this, however, the cover under the user company's policy must extend to damage caused by agency workers: Hungarian policy conditions differ in whether they treat an agency worker in the same way as the insured's own employee or – since the worker is not employed by the insured – as a contributor engaged by the insured, whose causing of damage may be excluded from the basic cover; so it is worth checking this in the policy and, if necessary, having the cover extended to agency workers. The agency's liability insurance typically covers the agency's own activity, not the work done by a worker it has placed with a client, but this too depends on the conditions. A recourse claim against the worker can be enforced within the statutory limits of employees' liability for damage; whether the user company can do this directly or through the agency is governed by the Labour Code's chapter on temporary agency work and by the agency agreement between the two companies. In practice, the insurance of the two companies is often not coordinated, so it is worth stating in the agency agreement which party holds cover for which loss, and in the event of a claim both companies should report the case on their own insurer's claims line.

The upper ceiling of the insurer's payout – typically set both per claim event and per insurance year. The right limit is sized to your contract portfolio and the possible chains of loss: the limit-sizing article.

The deductible is the portion of the damage that stays with you: a lower deductible is more convenient, a higher one typically comes with a more favourable premium. The right balance depends on your reserves and claim frequency – the logic is explained in the deductible article.

Most professional indemnity insurance ties cover not to when the damage occurred, but to when the claim is first made against the insured (claims-made); Hungarian policy wordings often combine this with a separate notification deadline owed to the insurer. The retroactive date determines how far back your protection reaches – continuity when switching insurer hinges on this: the key article is here.

Because of the claims-made logic, a claim can still arrive after you've stopped trading. This is what run-off cover (extended reporting period) is for – it's worth arranging before retirement or a change of profile: run-off cover article.

Typically from the start of cover recorded in the policy – which isn't always the same as the date of signing. Details: when your cover actually begins.

Continuity of cover: carrying over the retroactive date, run-off cover, and making sure the new limits match your current contract portfolio. The typical pitfalls of switching are covered in the coverage gap article.

Yes, and it's worth reporting: cover is tied to the activities set out in the policy, and damage arising from a new, undeclared activity can fall outside it. Reporting the change is typically quick and simple, but continuity depends on it: reporting activity changes article.

Under the policy conditions, the deductible is the part of the loss for which the insured must answer itself in respect of each loss event: the insurer deducts the deductible from the assessed amount of the loss and pays out only the part above it – under the liability insurance rules of the Hungarian Civil Code (Ptk.), directly to the injured party. The injured party can claim the missing amount, equal to the deductible, not from the insurer but from you, because you are liable to the injured party for the whole loss; the deductible is only a matter of settlement between the insurer and you. If the loss does not reach the deductible, under the conditions the insurer makes no payment, and the company bears the whole loss – with small losses this is the most common surprise. The form of the deductible (a fixed amount, a percentage or a combination of the two, per loss event) differs by insurer and by product, so it is worth checking in your own policy. Pay the amount equal to the deductible directly to the injured party – once the insurer has assessed the loss and settled its own part – and document the payment; however, do not make a statement admitting liability or enter into a settlement without the insurer's knowledge, as this may jeopardise your cover.

For certain activities, the applicable laws and chamber regulations require insurance – the list depends on the activity and changes over time, so instead of a categorical list, we recommend checking the current rules with your own chamber or professional body. On the framework: when it's mandatory.

The minimum is the entry point, not the right sizing: real risk depends on your contract portfolio and possible chains of loss. It's worth examining the gap between the two before signing – the needs assessment article helps with this.

This is now standard practice: the certificate of insurance is issued by the insurer. For what it should contain and how to request it: certificate article and certificate request checklist.

Tender documents typically specify a limit and type of cover, with a deadline. The good news: the right cover can be proven quickly if your policy is in order – the tender article walks through the process.

The claim for damages still stands – only now it falls against the business's own assets. On the consequences, factually and without fear-mongering: what happens without cover.

Often, yes: different orders of magnitude for limits, an English or German-language certificate, and sometimes terms tailored to local law. On preparing for this: foreign clients article.

According to the chamber FAQ, yes, but on two conditions: you, as the subcontractor, are named individually as an insured on the main contractor's contract, and you upload the document (the policy or a certificate of cover no more than 30 days old) to the chamber's contractor register (KIVREG) yourself – the government decree on compulsory contractor's liability insurance allows someone else to take out the contract as policyholder for the contractor's benefit. A “subcontractor extension” on the main contractor's policy is not enough, however: it covers only the main contractor's own liability for damage caused by its subcontractors, it does not make you an insured, so it does not fulfil your own obligation, and it shows up as a deficiency at the check. Also check whether the limit of the cover reaches the minimum for your construction revenue band – the limit of the main contractor's contract is typically shared, and claims of the main contractor and of the other insureds also use it up – and what happens when the contract expires or the project ends: if the main contractor's contract terminates, your uploaded certificate is left without any cover behind it, and the chamber can sanction the deficiency (prohibition of the activity for up to six months, then removal from the register). If you work for several main contractors, a contract of your own is typically simpler, because it does not depend on other people's projects; if you let me know, I prepare the comparison of quotes.

According to the chamber FAQ, the obligation is decided not by the form of taxation or by how significant the activity is, but by whether the business carries out construction work on a commercial basis and is listed in the chamber's contractor register (KIVREG): a sole trader taxed under KATA (the flat-rate small business tax) is under the same obligation as a company, and cover is also needed for construction work carried out as a secondary activity. If you suspend your sole proprietorship, you are not required to take out a contract for the period of the suspension; to reactivate your registration, however, you must first upload proof of the insurance to the KIVREG portal. If construction is only a registered activity that you do not actually carry out – for example alongside childcare or another main job – you can ask the chamber to suspend or delete the registration; without this, the entry in itself creates an obligation and shows up as a deficiency at the check. The minimum limit depends on construction revenue – for sole traders, on net income in the previous year – so with a small turnover the lowest band applies. If you are unsure whether your own registrations make you subject to the obligation, the KIVREG customer service of your regional chamber gives an official answer; as a broker, I help where I can on the contract side.

Document everything (photos, time, witnesses, the exact content of the claim), and report the claim to your insurer via its claims line or online portal – don't make any admission of liability before involving the insurer. The steps in order: first steps article.

Under voluntary liability insurance, the injured party typically asserts their claim against you, and you – as the insured – report it to your insurer. Where the law mandates cover, the injured party may, under the rules in force, also approach the insurer directly. On the process: notification process.

It depends on the case: straightforward property damage typically closes faster, while personal injury or disputed cases take longer. What's within your control: prompt notification and complete documentation – the claim documentation checklist helps with this.

It's worth first understanding the reasoning – the reasons for rejection article goes through the most common ones. If the case is disputed or stuck, as your broker I help you with the insurer, where I can: the broker's role.

Compensation for the infringement of personality rights under Hungarian law – it can appear in claims alongside financial loss. On the concept, factually and within the framework of the applicable laws: grievance award article.

Not entirely, but a documentation culture – a work log, photos, handover records – prevents most disputes, and works in your favour if a claim does arise. The practice: loss prevention in the trade.

No, most often it simply means a document or piece of information is missing to assess the case – it's a step towards a decision, not the decision itself. A quick, complete response typically speeds the case up; a separate article walks through the typical points and the best way to respond: supplying missing documents article.

Typically only if the lawyer was engaged on the insurer's instructions or with its prior approval: both the liability insurance rules of the Hungarian Civil Code (Ptk.) and Hungarian policy conditions make the reimbursement of legal and expert costs subject to this (under the Ptk., the insurer also advances approved costs at the insured's request), so when a claim arrives, the first step is to report it on the insurer's claims line, not to engage a lawyer. One Hungarian professional liability policy wording, for example, states that legal costs are reimbursed if they were incurred on the insurer's instructions or with its prior approval, and that a lawyer or expert may likewise be engaged only with the insurer's prior approval – without prior consent, the insurer either does not reimburse at all or reimburses only up to the extent laid down by law; this varies from insurer to insurer. The other common surprise is unfounded denial of liability: if the insured disputes a well-founded claim and thereby causes additional costs, under the policy conditions the insured bears these additional costs, and if the insurer has already paid them, it can claim them back from the insured. Legal defence is also in the insurer's interest, so policy conditions typically assume a legal representative appointed or approved by the insurer and the insurer's participation in the proceedings, and under several sets of conditions legal and expert costs count within the indemnity limit, not on top of it. If you have already engaged the lawyer, inform the insurer without delay and ask for approval in writing – whether lawyer's fees incurred before the claim was reported are recognised retrospectively is at the insurer's discretion, and the cost of a defence undertaken on your own initiative is not necessarily covered by legal protection insurance either, if it was started without consulting the liability insurer.

I act on the client's instructions: I assess your needs, obtain competing quotes from several insurers, and present them in a single table – the decision is always the client's. In a claim, notification goes through the insurer's claims line; if the case gets stuck or disputed, I help the client, where I can.

It's free of charge to the client – the broker's remuneration is paid by the insurer. This is standard market practice, and we're open about it.

Quotes from the insurers relevant to your activity – several competing offers in a single table, with strengths and weaknesses. I don't recommend a brand; I compare content.

An exact description of your activity, revenue order of magnitude, headcount, claims history, and the required limit – you can get started even without names or sensitive data. The full list: quote request data list.

Yes, this is one of the most useful 20 minutes there is: limit, deductible, retroactive date, exclusions – following the policy-review checklist. At the end, you'll have a clearer picture of where your current protection stands.

With a 20-minute, free conversation: book a time here. We'll review what your client or chamber expects, and what's in your current policy – no obligation.

It depends on the case: once you accept the offer, the insurer issues the policy, which can sometimes require a bit of extra data or a declaration. The exact steps and typical turnaround are shown in the signing article: how signing works article.

Typically: describing the activity inaccurately or incompletely, a limit left unchanged for years, and not reporting an old claims history. Every one of these can be fixed before signing with a thorough needs assessment – a separate article runs through the most common mistakes: common signing mistakes article.