Liability and insurance on temporary legal and compliance assignments

Short answer: Interim lawyers are only liable for fault: as staff leasing employees towards their employer (Art. 321e Swiss CO, section 619a BGB), as freelancers towards the client (Art. 398 CO, section 280 BGB). Towards third parties the company using them is usually liable (Art. 101 CO, section 278 BGB). Only admitted attorneys need compulsory indemnity insurance; the rest is contractual.

This guide is for general counsel, heads of compliance and procurement teams in Switzerland and Germany who use interim lawyers or compliance professionals. It explains who is liable when something goes wrong, which insurance applies and what belongs in the contract.

Who is liable when an interim lawyer makes a mistake?

Liability depends on the engagement model, not on the professional's job title. Staff leasing involves two contracts: the employment contract between the staffing provider and the professional, and the staff leasing contract between the provider and the client. There is no contract between client and professional. In freelancing, the client contracts for services directly with the professional or through an intermediary.

In staff leasing, the professional is integrated into the client's organisation and follows its instructions (section 1(1), second sentence, of the German Temporary Agency Work Act, AÜG; in Switzerland the transfer of substantial authority to give instructions, Art. 26 of the Employment Services Ordinance, AVV). The client directs the work. At Alpinum Solutions, direction and responsibility for results stay with the client; Alpinum provides the professionals. Any further liability of the provider, for example for careful selection, is a matter for the contract.

How is the professional personally liable?

Employed professionals are only liable for damage they caused through fault. In Switzerland, employees are liable for damage caused intentionally or negligently, and the standard of care depends on the occupational risk, level of education and expertise required (Art. 321e CO). In Germany, employees only owe damages if they are responsible for the breach (section 619a BGB), and the employer must prove fault.

Freelancers in Switzerland are liable as agents for faithful and diligent performance, generally to the same standard of care as employees (Art. 398 CO). In Germany, general contractual liability applies to freelancers: damages for breach of duty unless they are not responsible for it (section 280(1) BGB). The burden-of-proof rule for employees does not apply to them.

Who is liable towards third parties?

Towards counterparties, customers or authorities, the company the professional acts for is usually liable. Anyone who uses an auxiliary to perform an obligation must compensate damage the auxiliary causes in the course of that work (Art. 101 CO). In Germany, the obligor is responsible for the fault of persons it uses to perform its obligations as for its own fault (section 278 BGB). Outside contracts, a Swiss employer is liable for its auxiliaries unless it proves it took the required care (Art. 55 CO).

If an interim lawyer reviews a contract incorrectly and the counterparty suffers a loss, the claim is therefore first directed at the company. Whether the company can then take recourse against the professional or the staffing provider depends on fault and on the contract.

Which insurance is mandatory and which makes sense?

Professional indemnity insurance is only mandatory for admitted attorneys. In Switzerland, registered attorneys must take out cover of at least CHF 1 million per year or provide equivalent security (Art. 12(f) of the Federal Act on the Free Movement of Lawyers, BGFA). In Germany, the minimum sum insured for attorneys is EUR 250,000 per claim (section 51(4) BRAO). The obligation does not apply to syndikus lawyers (section 46c(3) BRAO).

For all other interim lawyers and compliance professionals there is no statutory insurance requirement. Depending on the model, the following makes sense:

• Staff leasing: check whether your own general and financial loss liability cover includes external staff, and ask which insurance the staffing provider holds.
• Freelancing: ask for proof of professional indemnity cover with an appropriate sum insured.
• Formal functions: if an interim professional takes on a role with its own responsibility, such as money laundering reporting officer or data protection officer, clarify inclusion in the D&O or liability policy.

Dealing with liability in the contract: the steps

Clear contracts prevent disputes when something goes wrong. Work through these points before the assignment starts.

1. Set the model: staff leasing or freelancing. This decides who is liable to whom.
2. Describe tasks and approvals: who decides, who signs, where the four-eyes principle applies. For high-risk matters, internal management approves.
3. Review liability clauses: caps are possible, but not for intent or gross negligence (Art. 100(1) CO); in Germany liability for intent cannot be waived in advance (section 276(3) BGB).
4. Obtain proof of insurance: know the sums insured and exclusions before work begins.
5. Regulate access and confidentiality: grant access only to the systems needed and agree confidentiality.
6. Document: record work status, approvals and handovers. This helps show who was responsible for what.

Roles and capacity

Liability matters at every level, from junior to senior. The more decision-making authority a professional has, the more important clear approvals become. Alpinum Solutions provides legal and compliance professionals through staff leasing and freelancing, part-time or full-time, as individuals or teams. In staff leasing the client has the authority to direct the work; freelancers work on their own responsibility within the agreed mandate. Direction and responsibility for results stay with the company.

Switzerland and Germany: what differs

The principles are similar: liability only for fault, liability for auxiliaries, compulsory insurance only for attorneys. The details differ. In Germany the employer bears the burden of proving the employee's fault (section 619a BGB). In Switzerland the standard of care expressly depends on the individual employment relationship and the abilities the employer knew of (Art. 321e(2) CO). The minimum cover for attorneys is set per year in Switzerland and per claim in Germany. For more on the models, see the comparison of freelancing, staff leasing and secondment.

Limits and risks

• No one-size answer: liability in a specific case depends on the contract, fault and loss. Have key clauses reviewed by your legal team.
• Insurance gaps: whether a policy covers external staff or pure financial loss is set out in its terms. Check this before the assignment starts.
• False self-employment: managing freelancers like employees risks reclassification. See engaging freelance lawyers without false self-employment risk.

Frequently asked questions about interim lawyer liability

Is the staffing provider liable for mistakes made by a staff leasing professional?

That depends on the contract. In staff leasing the client directs the work and the professional is integrated into its organisation (section 1(1) AÜG, Art. 26 AVV). The provider supplies the professional. What liability the provider accepts, for example for careful selection, and which caps apply are set out in the staff leasing contract.

Is an interim lawyer personally liable for an advisory error?

Only if at fault. Employees are liable to their employer under Art. 321e CO or section 619a BGB, and in Germany the employer must prove fault. Freelancers are liable to the client for diligent performance (Art. 398 CO, section 280 BGB). Towards third parties, the company is usually liable first.

Do interim lawyers need professional indemnity insurance?

By law only if they are admitted attorneys and act as such: in Switzerland at least CHF 1 million per year (Art. 12(f) BGFA), in Germany at least EUR 250,000 per claim (section 51 BRAO). For freelancers without admission, professional indemnity cover is voluntary but common and advisable.

Can liability be excluded in the contract?

Partly. In Switzerland, an advance exclusion of liability for unlawful intent or gross negligence is void (Art. 100(1) CO). In Germany, liability for intent cannot be waived in advance (section 276(3) BGB). Caps for slight negligence are common and should match the insurance.

Is an interim professional covered by the company's D&O insurance?

Not automatically. D&O policies are designed for the company's officers and senior managers, and the policy wording defines who is insured. If an interim professional takes on a formal function, such as money laundering reporting officer or compliance officer with regulatory responsibility, the company should clarify inclusion with the insurer before the assignment starts.

Next step

Alpinum Solutions is the leading provider of interim legal & compliance in Switzerland and Germany. Before the start we agree the model, tasks and responsibilities with you, so that the assignment is set up cleanly on liability too.

• Staff leasing for legal and compliance
• Freelance lawyers and compliance experts
• Procuring interim legal support: framework agreement, process and terms
• Models & legal framework: all guides on engagement models
• Discuss your needs

Last updated: 10 November 2026.