Professional Indemnity Insurance for Car Dealers
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Professional Indemnity Insurance for Car Dealers?
Professional indemnity insurance is intended to compensate for general financial damage that the insured may cause to their customers in the course of their work. Car dealers are required to purchase and maintain professional indemnity insurance in accordance with the Trade Act.
What Is Covered?
Liability for damages imposed on the insured when a third party suffers general financial loss that can be traced to the actions of the insured or their employees.
What Is Not Covered?
Losses resulting from the insured assuming liability beyond their legal liability as a car dealer.
Fines imposed on the insured or a third party.
Accidents causing bodily injury or damage to property.
Activities of the insured outside the European Economic Area, or liability for damages that exceeds Icelandic rules on the basis for compensation or determination of compensation amounts.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
Where is the insurance valid?
The insurance is valid anywhere within the European Economic Area (EEA).
What are the insured's obligations?
To provide all necessary information, whether at renewal, when making changes to the insurance, or when submitting a claim.
As soon as the insured becomes aware of, or suspects, that a claim for damages may be made against them, they must notify the insurer in writing.
If there are any changes to circumstances or information that have been disclosed to the insurer in the insurance application or otherwise, the policyholder must inform the insurer of such changes.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.