All professionals who open a business are exposed to many risks. They must therefore take out insurance to protect themselves against risks and protect their employees. But what assurances do they have to subscribe to? What are compulsory and optional insurance? We take stock.
There are three types of risks against which business leaders must protect themselves:
- Risks related to the activity.
- Risks related to property.
- Risks related to people (managers and employees).
To protect themselves, there are compulsory and optional insurances.
Let ‘s talk first about professional liability insurance. This is one of the essential assurances for any company (in the creation or development phase), because any professional activity can result in damage, whether physical or material.
Civil liability is a legal obligation requiring any person to repair the damage caused to a victim of his or her own act, the person or persons responsible for the victim.
Professional liability insurance should cover:
- Damage caused outside the premises (eg at a construction site).
- Damage caused by the use of non-business property.
- Occupational diseases that could affect employees.
Professional multi-risk insurance guarantees the premises and their contents against damage caused to third parties and the owner (fire, explosion, climatic event, electric damage, natural disaster). If the business is a tenant, you must take out a multi-risk insurance policy that includes a liability guarantee to the owner. If the company owns the occupied premises, it is necessary to take out a multi-risk insurance including the guarantees value to nine and indirect losses.
As regards optional insurance, we can cite:
- Operating loss insurance: If a business is stopped (or with insufficient turnover) due to a disaster (natural disaster, fire, etc.), it is the operating loss insurance policy that Charges the loss of the gross margin and fixed expenses of the company (expenses, salaries …).
- Key person insurance: This insurance covers the risk of accident, disability or death of one or more key persons in the company and compensates for the damage suffered if such an event occurred.
- Cargo insurance: When you carry goods, they are exposed to risks such as damage, fire, vehicle rollover, theft, breakage, etc.
- Car fleet insurance: Vehicle fleet insurance guarantees a company against the risks associated with its fleet of vehicles.
- Machine broken insurance: This insurance can cover claims related to industrial machinery and equipment but also to the computer and electronic machines (cash register …).
- Personal insurance: mutual health insurance / pension / supplementary pension.
As we can see, there is a multitude of assurances. If few are mandatory, some are strongly advised according to the nature of its activity (example operating loss insurance for farmers who have a large volume of activity). Find out more about the risks to which you are exposed!