Image:First Liability Insurance for Digital Businesses in Cyprus by exali AG
Adam G. Butkiewicz
By: Adam G. Butkiewicz

First Liability Insurance for Digital Businesses in Cyprus by exali AG

Freelancers and digital entrepreneurs, myself included, have been waiting for this desperately. Exali AG now offers their outstanding insurance package for digital professionals in Cyprus, too. Why is this good news? Until now, there has been no liability insurance for online businesses in Cyprus. Liability insurance is a must for conscientious entrepreneurs.

In short, What does exali's Professional Indemnity for Digital Professions cover?

  • Professional negligence - e.g., damage caused by a mistake in performing a job for a customer or poor consultation, including service delays
  • Unintentional violation of trademark and copyright laws - e.g., using an image on your website without permission
  • Violations of the EU General Data Protection Regulation
  • Breach of confidentiality - e.g., passing on sensitive customer information without permission
  • Loss of your customer's documents or data
  • First-party cyber damage, provided you have selected the 'First Party Cyber Insurance' Add-on
  • And much more!

exali AG x cypruslimited.com is a perfect match!

The second part of the good news: exali AG and cypruslimited.com have worked together behind the scenes since mid-2023. Our target groups overlap, and our approach to prioritizing the user-friendliness of our online services is identical. There is a lot in the pipeline for our community ūü§ę. If you can't wait to sign up, note that you can¬†save 10%¬†with the¬†promotion code 'Cyprus10'.¬†Please find all the applicable discounts, two calculation examples, and links here.

About exali AG

Exali AG, founded in 2008 and based in Augsburg, Germany, specializes in professional indemnity insurance, focusing on sectors like IT, telecommunications, media, consulting, and eCommerce. Their services include modular insurance plans tailored to the specific needs of digital professions, ensuring clients pay only for necessary coverage. Currently, exali has way over 17.000 clients in now 28 countries across Europe. The company's experience and client feedback reflect its reliability and expertise in the industry.

Exali is an insurance broker and agent for Markel Insurance SE. Markel Insurance SE is a global specialty insurer of Markel Corporation. Markel Corporation was established in 1930, headquartered in Richmond, Virginia, and has a strong presence in various insurance and reinsurance sectors. Markel Insurance SE operates mainly in the area of commercial indemnity insurance.

Speaking from my experience, I'm a shareholder of two non-Cypriot companies insured with exali for several years. I remember once we had a claim, and exali's online process quickly solved and paid everything. So, from my side, both thumbs up! One more reason why I am excited to cooperate with exali in Cyprus.

Let's quickly dive into the details and costs of exali's Professional Indemnity Insurance.

Who is the Professional Indemnity Insurance for?

The Professional Indemnity Insurance for Digital Professions is aimed at freelancers, the self-employed, and companies in the following fields:

  • Information technology (IT)
  • Telecommunications technology (Telco)
  • Creative & marketing professionals
  • Business consultants
  • and other digital professions

What is insured by the Professional Indemnity Insurance?

Exali’s Professional Indemnity Insurance includes:

  • the fulfillment of justified compensation for damage because of your professional activity causing
  • financial loss,
  • property damage or physical injury or
  • financial loss due to physical injury or property damage as a result of your insured activity if you choose general liability,
  • the costs of defending¬†unjustified¬†claims, such as first-party losses caused by damage to your reputation or by a loss of work documents or control over your domain, legal defense services in income, penalties, and insolvency disputes.

The insured sum ranges from ‚ā¨100.000 to ‚ā¨3.000.000 for financial losses and from ‚ā¨2.000.000 to ‚ā¨10.000.000 for general liability damages.

Exali also offers First-Party Cyber and Data Risks Insurance as an optional add-on. The insured sum for cyber attack and data risk damages ranges from ‚ā¨50.000 to ‚ā¨150.000.

How much does exalis Professional Indemnity Insurance cost?

The insurance rates depend on your yearly turnover, the sum insured for claims, and the choice of modules and add-ons.

Generally, the insurance comprises the Financial Loss Insurance and the General Liability Insurance modules. Exali also offers First-Party Cyber and Data Risks Insurance as an add-on. The General Liability Insurance modul and the First-Party Cyber and Data Risks Insurance add-on are optional.

Calculation Example One:

Suppose a small Cypriot online marketing agency has a yearly net turnover of up to ‚ā¨250.000.

With that turnover, the¬†Financial Loss Insurance¬†with an insured sum of ‚ā¨100.000 per claim (annual limit: ‚ā¨300.000) would cost 316 Euros annually.

The optional¬†General Liability Insurance¬†with an insured sum of 2 million Euro per claim (max. 6 million per year) would add 60 Euros. The also optional¬†First-Party Cyber and Data Risks Insurance¬†with an insured sum of ‚ā¨50.000 per claim would cost 68 Euros.

In total, the insurance package would cost 444 Euros per year. Quite affordable, right?

Calculation Example Two:

Suppose a solo web developer with his newly incorporated Cyprus Limited has an expected yearly net turnover of ‚ā¨75.000 in his first year.

In this case, the¬†Financial Loss Insurance¬†with an insured sum of ‚ā¨100.000 per claim (annual limit: ‚ā¨300.000) would cost 260 Euros annually.

The optional¬†General Liability Insurance¬†with an insured sum of 2 million Euro per claim (max. 6 million per year) would still cost 60 Euros. The optional First-Party Cyber and¬†Data Risks Insurance¬†with an insured sum of ‚ā¨50.000 per claim would cost 58 Euros. In total, the insurance policy would be 378 Euros per year.

Fortunately, exali offers a 15 % discount for business founders and startups in the first two years. So, in our case, the premium would be just 321.30 Euros.

Other applicable discounts

Besides the startup discount of 15 %, exali also offers the following:

  • a¬†10 % discount for a 3-year contract term¬†(payment is still yearly)
  • additional¬†10 % with the promotion code 'Cyprus10'¬†(first year)

The discounts do not add up but are applied individually and in stated order.

Applying all possible discounts, the first-year premium for both examples would be:

  • Example One: ‚ā¨444 - 10 % (3-year contract) - 10 % promotion code (first year) =¬†359.64 Euros.
  • Example Two: ‚ā¨378 - 15 % (startup) - 10 % (3-year contract) - 10 % promotion code (first year) =¬†260.25 Euros.

Second-year premium:

  • Example One: ‚ā¨444 - 10 % (3-years term) =¬†399.60 Euros.
  • Example Two: ‚ā¨378 - 15 % (startup) - 10 % (3-years term) =¬†289.17 Euros.

In the third year, the startup bonus for Example Two will be discontinued. With the ongoing 3-year contract term discount, the annual cost would be 340 Euros. After three years, you can renew your 3-year contract term and keep the benefit of a yearly 10 % discount.

Total possible savings after three years:

  • Example One: 173.80 Euros (13 % total discount)
  • Example Two: 244,58 Euros (21,5 % total discount)

Are you interested in liability insurance for your business in Cyprus?

Equipped with the possible discounts, you can compile and calculate your modules and add-ons directly on exali.com.

Adam G. Butkiewicz
Adam G. Butkiewicz

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