When an entrepreneur decides to create his business, he must imperatively think about subscribing to certain insurances to protect himself from the risks to which his activity may be confronted.
Professional civil liability: definition
As part of his activities, it happens that the professional causes damage to one of his customers, suppliers, or even to a third party. The damage may be caused unintentionally by the professional’s staff, premises, or equipment. In any case, if a person suffers damage, he can seek the civil liability of the professional.
In concrete terms, this means that the professional is required to repair the damage caused by his activity. Civil liability may be incurred for all types of damage, namely:
Bodily damage: these are attacks on the physical integrity of the person. This covers medical and hospital costs, compensation for lost wages, etc.
Material damage: these are attacks on people’s property such as the deterioration or destruction of property. This covers, for example, the replacement of torn or stained clothing.
Intangible damage: these are the financial losses linked to the damage such as the interruption of service, the impossibility of enjoying a right, etc.
Repairing such damage can be extremely expensive for a professional, especially since damage always occurs unexpectedly. It is therefore essential (and in some cases mandatory ) to take out professional civil liability insurance called RC pro insurance.
Thus, annually or monthly, the professional pay an RC pro insurance premium. In return, it causes damage to a person in the course of its activities, the insurance will cover part or all of the costs of repairing the damage.
The obligation to take out professional liability insurance
All professionals who practice a regulated profession are required to take out business civil liability insurance, which is explained by the importance of the risks to which these professions may be confronted.
The professionals concerned by this obligation are in particular:
Travel agencies: the insurance must necessarily cover damage caused by negligence or errors during the organization and sale of stays. This covers, in particular, the booking of transport tickets, accommodation and tourist visits.
Real estate professionals ( real estate agent, building manager, etc.): when the professional engages in buying, selling, trading, or management activities, he must take out insurance to cover the damage it is likely to cause as a result of an error, omission or negligence.
Hoteliers: the main purpose of the insurance is to cover damage such as the deterioration or theft of the luggage and belongings of the clientele.
Figures and legal professionals ( auditor, lawyer, notary, bailiff, etc.): the civil liability of these professionals is often engaged due to a breach of their obligation to provide advice and diligence. The liability of the professional may also be engaged in the event of fault or negligence.
the healthcare professionals ( liberal nurse, doctor, etc.): the insurance covers damage caused to a patient due to incorrect diagnosis, harmful treatment, or manipulation.
Optional recourse to professional liability insurance
Even if the professional carries out an activity that is not regulated, it is strongly recommended that he take out optional corporate liability insurance.
Damage that occurs unexpectedly can represent an extremely expensive expense that can be difficult or even impossible for the professional to assume. The conviction for professional civil liability can have significant consequences on the activity and the cash flow of the company.
Also, even if the professional civil liability insurance is for the professional a charge to be taken into consideration, its subscription can prevent him from going out of business in case of commitment of his professional civil liability.
