When it comes to managing their company’s budget, bosses and micro-entrepreneurs embark on a hunt for unnecessary expenses. For some, not taking out liability insurance is part of the potential money savings. Wrongly, since in the event of an incident, they will be required to reimburse the damage caused. We return in detail to the usefulness of liability insurance.
What is RC pro insurance exactly?
As soon as bodily, material or immaterial damage is caused by employees, professional equipment or even subcontractors, the responsibility of the company is engaged. It must then reimburse the damages suffered by the third party concerned. When the losses caused are significant, having taken out RC insurance upstream offers a huge advantage, the company is covered and has no unexpected expenses to assume. For companies with fragile cash flow, this is a plus that can even act as a shield against the risk of bankruptcy.
I’liability insurance pro covers several types of professional damage:
- physical
- Financial
- Materials
- Breach of a contractual commitment
- Delay or cancellation of delivery…
Also note that the responsibility of the company is engaged even if there is no contractual relationship with the third party. The latter can even claim damages and interest in compensation. In some cases, the bill can quickly climb…
Is having RC insurance compulsory for professionals?
A customer who sprains his ankle in a fall in a workshop, a fire that destroys a partner’s vehicle… Although almost any incident can occur in the context of a professional activity, the law does not require managers to take out RC pro insurance. However, for the so-called “regulated” professions, those which incur more risks than the average, the regulations make liability pro insurance compulsory. The list of professions concerned is quite long, you can consult as an example the BPI listing.
Either way, mandatory or not, professional indemnity insurance is strongly encouraged.
Why choose RC insurance?
Being able to compensate the victim of an injury without having to pay money has certain advantages. On the one hand, to preserve the company’s working capital and on the other hand, to avoid wasting time settling a conflict that can last several months. Also note that potential legal costs are also covered by liability insurance. But of course, before being dragged before a court, it is better to immediately initiate compensation. And that’s the whole advantage of RC pro insurance.
You should also know that this type of insurance can turn into a growth lever for your business. Customers who have received proof of insurance will be more inclined to sign a commercial contract with your company.
Professional RC insurance, yes, but at what cost?
As you can imagine, the cost of civil liability insurance depends on many criteria. The sector of activity, the legal status, the turnover, the number of employees, the guarantees chosen for optimal coverage and their scope… In short, many parameters that do not allow us to give a precise price. Nevertheless, here are some examples of average budget to help you see more clearly:
- Freelancer: €100 per year
- Liberal profession: from 90 to 500 € per year
- Sole proprietorship: from 100 to 1000 € per year
- Agricultural sector: €2,000 per year
Other complementary insurances to the RC pro can also be taken out. They are compulsory or not depending on the professions and the cost for some, particularly in the construction industry, can be quite high (but always less than the amount of compensation, etc.). For information, we can cite:
- Legal protection to benefit from personalized support and reimbursement of legal costs: €100 per year
- The ten-year guarantee for the construction industry which covers damage up to 10 years after the end of the work: €600 per year
- The operating loss that allows companies to continue their activity despite the disaster (compensation for rental costs of new premises, etc.): €300 per year
- Professional multi-risk to obtain full coverage: €400 per year
The limits of RC pro insurance
Before signing your contract and in order to avoid any unpleasant surprises, we invite you to carefully check the exclusions and the guarantee limits. These vary from contract to contract. For example, the insurer can apply a maximum compensation amount of €200,000 per year and €50,000 per claim. Don’t hesitate to request several quotes to compare!
