The life of a company is strewn with pitfalls and unforeseen events. The current period, marked by the coronavirus pandemic, reminds us that no company is totally protected against all the risks that can arise in the course of its life.
If you want to protect your business and your employees, there's only one solution: be insured. We know that it's sometimes difficult for business owners to know which business insurance to choose, or whether it's compulsory or optional.
Faced with such a vast subject, the aim of this article is to identify the most recurrent areas of questioning, and to provide a clear answer.
Follow the guide!
Not all companies are subject to the same insurance obligations. Compulsory for some, optional for others, you need to take stock of your situation.
Professional liability insurance (which we will explain in greater detail below) is mandatory for certain regulated professions, including :
- Health professionals (doctors, dentists, osteopaths, nurses, midwives, etc.)
- Legal professionals(lawyers, notaries, bailiffs, etc.) These professionals must comply with several duties of advice, loyalty, prudence and diligence, as well as the obligation to ensure the effectiveness of their acts.
- Chartered accountants
- Real estate agents
- Travel agencies
- General insurance agents
For other professions, this insurance is optional. However, it is sometimes useful to take out one or more types of insurance to protect yourself against the occurrence of a risk.
Before committing yourself, take the time to study them in detail. That's why we've compiled an overview of the most frequently subscribed offers below.
Professional liability insurance compensates your customers in the event of a dispute arising out of your business dealings. Instead of your cash flow, it covers all defense costs, as well as any damages to compensate the third party.
In many professions, a dispute (usually unintentional and in good faith) can happen very quickly, and can be very costly for the company. That's why this insurance is often nicknamed "professional life insurance". It protects your company's financial equilibrium, particularly in the event of a major claim.
Some customers also require this type of insurance when signing major contracts involving large sums of money.
Almost all companies in France now use IT equipment to conduct their business. In 2018, more than half the working population used a computer in the workplace every day. Among managers and professionals, this proportion exceeds 80%.
Professional IT insurance can be taken out by any professional. It covers :
- All fixed IT tools on your company premises
- Portable computing equipment
- Computer data
In most cases, they cover electrical damage, fire, explosion, lightning damage, water damage, equipment breakdown, vandalism, theft, etc.
The increasing number of computer attacks has led a growing number of companies to take out insurance to protect their IT systems. Today, SMEs are just as exposed to the risk of data breaches as multinationals. So you're protected against the consequences of a cyber-attack on your business.
Legal protection insurance covers the insured against legal proceedings, and facilitates the settlement of disputes. Many insurers provide legal assistance through a specialized service, and cover legal costs (lawyers' fees, expert appraisal fees, procedural costs, etc.).
This insurance generally covers legal action initiated by the insured, but also when it is brought against him or her. This is particularly useful in the event of a dispute with an employee, customer or supplier.
The world is changing faster and faster, and risks often arise in unpredictable ways. That's why it's a good idea to insure against the main risks that could affect your business.
A calm operating environment is an important prerequisite for enabling all stakeholders to work together with confidence, in the interests of the project's success.
Written by our expert Paul LASBARRERES-CANDAU
April 14, 2020
