Guarantee Obligations in Europe
Insurance or guarantee obligations for service providers presenting particular risks in relation to the E.U. Services Directive
The following is an examination of insurance or guarantee obligations for service providers presenting particular risks regarding the European Union Servicies Directive [1]:
Insurance or guarantee obligations for service providers presenting particular risks: Professional liability insurance and guarantees
Article 23 encourages Member States to require service providers established in their territory, and whose services present a direct and particular risk for the health or safety of the recipient or of a third person or to the recipient's financial security, to subscribe to a professional liability insurance or to provide for some other form of financial guarantee. Such insurance should be appropriate to the nature and extent of the risk, and cross-border coverage should only be required if and to the extent that the service provider actually provides cross-border services.
Non-duplication of insurance or guarantee requirements in relation to the E.U. Services Directive
The following is an examination of non-duplication of insurance or guarantee requirements regarding the European Union Servicies Directive [1]:
Non-duplication of insurance or guarantee requirements: Professional liability insurance and guarantees
Article 23(2) concerns service providers who are already established in a Member State and want to establish in another Member State. The Member State where a service provider wants to establish will have to take into account essentially equivalent or comparable insurance or guarantee requirements to which the provider may already be subject to in the Member State of first establishment, and may not require the provider to take out any additional insurance or guarantee if the existing insurance or guarantee already covers the territory of the Member State where the provider wants to establish. Whether an insurance or a guarantee is equivalent or essentially comparable has to be assessed by the competent authorities in the light of its purpose and the cover it provides in terms of insured risk, insured sum or ceiling for the guarantee as well as possible exclusions from the cover. Where the insurance coverage is not fully but only partially comparable, a supplementary arrangement may be required. Member States should consider specifying this by law whether in a horizontal law or in the relevant specific legislation. In
any case, Member States have to accept attestations of such insurance cover issued by credit institutions and insurers established in other Member States as sufficient evidence of compliance with the insurance obligation in their territory.
Resources
Notes
- Information on non-duplication of insurance or guarantee requirements based on the EU Services Directive Handbook, UK Government
See Also
Resources
Notes
- Information on insurance or guarantee obligations for service providers presenting particular risks based on the EU Services Directive Handbook, UK Government