Professional insurance: what is it and when is it compulsory?
Whatever your professional activity, there are always risks that you have to face. It could be related to workplace safety, a financial risk or the possibility of creating harm to a third person. When a claim arises in the course of your work, the compensation can ruin your business or expose you to a dismissal. To do this, there are professional insurance contracts, some of which are mandatory. The details.
What is professional insurance?
As its name indicates, professional insurance is a guarantee against the risks to which the property and the agents under the responsibility of the insured can be exposed. Subscription to a professional insurance contract is mandatory. Thus, a professional must at least have taken out a civil liability insurance policy. This is the minimum guarantee that covers the bodily injury or material damage caused to a third party by the insured, his employees or the materials under his responsibility. There are also other guarantees that it can subscribe such as fire insurance, insurance in case of water damage, theft insurance, insurance breakage ice or insurance loan. Most of these guarantees can be grouped around a single contract, this is known as a multi-risk insurance contract.
Compulsory professional insurance: for whom?
To subscribe a professional liability insurance contract is mandatory for all those who have a regulated professional activity. This is particularly the case for health professionals, accountants, building professionals, legal professionals and insurance brokers. There are other guarantees that may also be mandatory or recommended depending on the area in which you operate. The choice of guarantees to be taken out under professional insurance varies according to the activity of the company. If a claim occurs, the guarantees are not automatic but depend on the contents of the insurance policy. Also, it is important to read the general conditions as well as the special conditions of your professional insurance contract. You also need to take stock of the risks to which you may be exposed in the course of your activities.