What is professional civil liability?
Professional civil liability is the principle according to which a company is liable for all the damage it causes. Whether this damage takes place during the exercise of the mission, or simply in the life of the company, and that the damage concerns a customer or any other person outside the company.
Who can be held responsible for damage within the company?
All agents can cause an accident and thus engage the professional civil liability of the company.
The elements under the responsibility of the company are:
- The leaders
- The employees
- Trainees and work-study trainees
- The tools
- Animals
If a service provider or subcontractor causes damage to a client, the company that employs them will have to bear the costs. This is why we advise you to always request an RC Pro insurance certificate from all your employees.
What type of damage is involved?
All types of damage can lead to the questioning of the professional civil liability insurance of the company.
Among the damages to third parties that may occur:
- Injury
- Material and immaterial damage
- Purely financial damages that are not the consequence of material or bodily damage
What is the difference between operating RC and activity RC?
The operating RC and the activity RC are two guarantees that are part of the RC Pro insurance contract. It each covers a specific part of the risk of damage to third parties.
These warranties specifically cover:
- Operating RC covers all damage that may occur in the day-to-day life of the business, during operations in general.
- Liability for an activity specifically concerns damage occurring during the performance of the service, or during the manufacture of the product.
What are the other guarantees of an RC Pro insurance contract?
A professional civil liability insurance contract (or “RC Pro”) covers the risk of damage to a company’s third parties. This contract is made up of a multitude of guarantees, and each of them is used to cover a specific part of the professional activity. To better navigate and compare the advantages of the different formulas, a list of the most common guarantees is given here:
- The guarantee of the inexcusable fault of the employer.
- The inexcusable fault is most likely to arise when the employer allows a risk of which he is supposed to be aware to run. Again, moral damages and bodily harm are legions.
- The recourse defense guarantee.
- Most RC Pro insurance contracts have a defense guarantee allowing you to call on legal experts for advice. This guarantee also covers part of the lawyers’ fees in the event of legal proceedings.
What is professional insurance?
Professional insurance definition
Running a business involves identifying and managing business risks and, depending on the consequences and likelihood of occurrence, opting for the purchase of adequate professional insurance.
The concept of professional insurance covers all the insurance contracts that can be taken out by a company in connection with its activity.
It aims to protect the company against the risks arising from its operation in return for a contribution. If an event covered by the insurance contract occurs, the insurer is required to pay compensation, the amount and terms of which (payment of a deductible, compensation ceiling, etc.) are contractually provided for. In business law and more specifically in contract law, it is a random contract where the insurer’s obligation to indemnify depends on the occurrence of events beyond the control of the parties.
Why should a company take out insurance?
Two reasons can motivate a company to take out insurance:
- optimal risk management;
- a legal obligation specific to certain regulated activities.
The company is exposed to numerous risks whose consequences and probability of occurrence may vary. Although operating a business is inherently risky, some managers may be motivated to limit certain risks that could be fatal to the operation by taking out a professional indemnity insurance contract. Just like a financial investment, each company compiles and determines its level of protection based on its risk aversion.
Sometimes, the activities carried out, due in particular to the harmful consequences for third parties, are subject to regulations obliging the company to take out professional civil insurance (legal professions, architects, medical profession, construction, etc.).
What insurance should I take out for my business?
A company is exposed to risks concerning its personnel, its assets (buildings, materials, goods, etc.) or its liability. Depending on these risks, it may take out personal, property or liability insurance cover. Some insurance allows adequate risk management for all companies regardless of their sector of activity. They are generally the subject of a single contract, professional multi-risk insurance. Others are reserved for specific activities such as freight insurance or agricultural insurance. Finally, depending on the type of business, the insurance contract must be adapted (micro-entrepreneur or auto-entrepreneur insurance, for example).
Professional civil liability, compulsory insurance?
Professional civil liability (or RC pro) aims to cover the company against involuntary damage caused to others (customer, supplier, third party, etc.). In other words, RC pro covers all bodily, material or moral damage caused by the fault, negligence or imprudence of the company and its employees.
Note: Professional civil liability can be included in professional multi-risk insurance or taken out separately.
It is possible to take out additional cover such as civil liability “after delivery” protecting the company from damage caused to third parties by the goods delivered or the services performed.
The price of RC pro insurance varies according to:
- of sales ;
- the size and status of the company (thus micro-enterprise insurance is much less expensive than professional liability insurance for an SAS with 150 employees, etc.);
- the sector of activity;
- deductibles, compensation limits and warranty exclusions.
Although it is not compulsory in principle, professional civil liability is a professional insurance commonly taken out. However, for certain regulated activities, its subscription is mandatory, in particular for:
- medical professions;
- legal professionals (lawyer, notary, bailiff, etc.);
- accountant ;
- real estate agents;
- architects;
- construction workers
Property damage insurance
Damage insurance is a professional insurance policy that insures the company’s assets against different types of events. Indeed, some damages are not caused by third parties (natural disasters) or, at least, their authors could not be identified. Therefore, in the absence of a designated manager and insurance, the company cannot obtain compensation for its loss. The damage insurance makes it possible to compensate for this eventuality. With the damage insurance it is possible to cover in particular:
- company goods or inventory;
- production tools;
- the furniture ;
- the buildings…
In addition to covering material damage, damage insurance can cover the possible financial consequences of the cessation of activity (insurance of operating losses) and many other costs (expenses for excavation, rescue, fees, etc.) to damage.
The events covered by the insurance depend on the clauses of the insurance contract. In most cases, the events covered are:
- fires and explosions;
- loss of goods;
- storms, hail and other bad weather (floods, mudslides, etc.);
- riots and popular movements;
- theft and vandalism;
- IT risks;
- electrical damage…
Damage insurance is in principle not compulsory. On the other hand, damage-work insurance is compulsory for all natural or legal persons having construction work carried out.
The price of damage insurance will vary according to the price of the goods covered, the scale of the activity and the extent of the events covered.
personal insurance
Personal insurance consists of insuring individuals against bodily injury, disability, death and illness. There are usually two categories:
- provident insurance offering guarantees in the event of death, disability, incapacity for work, etc.;
- health insurance (or health insurance), part of which is covered by social organizations and the other part by private complementary health insurance.
