What is professional business insurance?
Professional business insurance is a set of specific guarantees adapted to the needs of businesses. It covers risks linked to professional activity, such as material damage, civil liability or financial losses. Taking out professional insurance therefore allows you to protect yourself against everyday hazards, and thus preserve the sustainability of your business.
The different types of insurance for businesses
Compulsory insurance
Certain professions are subject to legal obligations in terms of insurance. For example :
- Professional Civil Liability (RCP): this insurance is required for certain regulated professions, such as lawyers, accountants or doctors. It covers any damage caused by the company or its employees to third parties (customers, suppliers, etc.).
- Ten-year Insurance: this concerns building professionals and guarantees repair of damage that could affect the solidity of the work for ten years after its delivery.
- Compulsory Unemployment Insurance for self-employed workers: since January 1, 2019, all self-employed workers have been subject to compulsory unemployment insurance, which provides them with compensation in the event of involuntary loss of employment.
Optional insurance
Beyond legal obligations, there is also optional professional insurance, which can be useful to protect your business. Among them :
- Professional Multi-Risk Insurance (AMP): it brings together several essential guarantees to cover the company's property and activities. It generally includes Operational Civil Liability, insurance against material damage and guarantee against financial losses caused by a disaster.
- Business Interruption Insurance: it compensates for the economic consequences caused by a disaster, such as a drop in turnover or additional costs incurred due to the unforeseen event.
- Key Person Insurance: this insurance aims to compensate for losses suffered by the company following the death or disability of an employee essential to the proper functioning of the company.
How to choose your professional insurance
To choose the right professional business insurance , you should follow a few steps to find the solution best suited to your needs:
- Establish a risk diagnosis: this requires analyzing the specificities of your activity and identifying the different sensitive points in terms of risks.
- Determine the necessary guarantees: based on the diagnosis carried out, it is possible to select the guarantees corresponding to the needs of the company.
- Create quotes: once the guarantees have been identified, you can then request different quotes from insurers in order to compare their offers and the prices offered. It is recommended to compete to obtain the best conditions.
- Study the guarantees and exclusions: it is important to be aware of the guarantees as well as any exclusions provided for in the contract, to avoid any unpleasant surprises in the event of a claim.
- Check the quality of customer service: finding out about the insurer's reputation and quality of customer service allows you to assess the quality of professional coverage.
The importance of regularly reviewing your professional business insurance contract
It is recommended to regularly check the clauses of your professional insurance contract. Indeed, it is possible that the needs and conditions of the company evolve over time, thus rendering certain guarantees useless or even requiring new ones to be properly protected. It is therefore wise to take the time, each year, to take stock of your guarantees and to discuss with your insurer to ensure that they are still adapted to your professional situation
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