Insurance of the individual entrepreneur

Verified 22 September 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Individual business Want to create a Depending on the activity carried out, you are subject to the obligation to take out certain insurance.

Individual business A person may be required to take out certain insurance depending on his activity. One professional property and casualty insurance is an adaptable contract that allows you to choose the scope of the guarantees. All the compulsory insurance can therefore be combined in this multi-risk insurance.

Property Insurance

Vehicle insurance

If you own or rent one or more vehicles, you must be insured for each of these vehicles.

You must take out insurance for vehicles used in your professional activity .

This insurance covers all travel within the professional framework. It covers the driver's liability to compensate for damage caused during the use of a vehicle. It can also protect against theft, fire or ice breakage.

It must be taken out with an insurance company which is authorized to carry out insurance operations against motor vehicle accidents.

The cost insurance varies depending on the number of vehicles you own.

Insurance of the premises

If you are tenant from your premises, you must take out insurance. It may also cover the company's equipment, fittings and stocks.

Insurance allows you to be covered if any of the following events occur :

  • Fire
  • Explosion
  • Water damage
  • Natural disaster

You can also anticipate other risks to be guaranteed according to your needs: theft, violation, etc.

The cost your insurance varies depending on the size of your premises and the municipality in which they are located.

FYI  

If you own your premises, you are not subject to the insurance obligation of the premises, however this is strongly recommended.

Employee insurance

If you have employees, you must take out a called insurance supplementary social protection of employees to enable them to benefit from mutual assistance.

The company must participate in height of 50% minimum the financing of the mutual society of its employees.

You negotiate the insurance contract with the insurer. You therefore have the possibility of extending the benefit of this social protection to the children and spouses of your employees.

The cost insurance varies according to the number of employees and the turnover of the business.

Business Assurance

If you exercise regulated activityYes, you are most certainly subject to compulsory insurance.

Here are some regulated professions that are affected by this insurance obligation:

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Legal professionals

Professional indemnity insurance

You have an obligation to subscribe to a professional indemnity insurance (CPR).

This insurance allows you to cover the financial consequences of damage to third parties while carrying out your activity.

The insurance will cover the following costs:

  • Defense costs in case of legal proceedings (fees of experts and lawyers)
  • Compensation material damage (property damaged or destroyed), non-material damage (financial loss following delay in performance) or personal injury (injury, death.)

FYI  

Remember to inquire to make sure that you are not already insured for your professional liability as part of your home insurance.

The average annual cost of your insurance varies depending on your revenue (CA), for example:

  • If you have an annual CA of €250,000, insurance costs on average €350
  • If you have an annual CA of €500,000, insurance costs on average €450

Healthcare professionals

Medical liability insurance

You are affected if you are one of the following:

  • Liberal healthcare professional
  • Company engaged in prevention, diagnosis and/or care activities
  • Health product producer, operator and supplier

You must take out insurance for protect yourself in case of damage third party in the course of your professional activity (e.g. diagnostic error or delay, choice of treatment not appropriate to the patient’s condition).

It also covers your employees when they act in the course of their duties.

The cost insurance varies according to the number of employees and turnover.

Construction professionals

Professional indemnity insurance

You have an obligation to subscribe to a professional indemnity insurance (CPR).

This insurance allows you to cover the financial consequences of damage to third parties while carrying out your activity.

The insurance will cover the following costs:

  • Defense costs in case of legal proceedings (fees of experts and lawyers)
  • Compensation material damage (property damaged or destroyed), non-material damage (financial loss following delay in performance) or personal injury (injury, death.)

FYI  

Remember to inquire to make sure that you are not already insured for your professional liability as part of your home insurance.

The average annual cost of your insurance varies based on many criteria, including:

  • Activity of the company
  • Company size
  • Turnover
Ten-year liability insurance

When you are the builder of a building, you are responsible for 10 years damage in relation to the solidity of the structure or to elements of equipment which cannot be dissociated from the structure. We're talking about ten-year guarantee.

In order to cover this risk, you must ensure that your liability is incurred.

The average annual cost of your insurance varies depending on your revenue (CA), for example:

  • If you have an annual CA of €250,000, insurance costs on average €1,750
  • If you have an annual CA of €500,000, insurance costs on average €2,400

Real estate agents

Professional indemnity insurance (CPR)

You have an obligation to subscribe to a professional indemnity insurance (CPR).

This insurance allows you to cover the financial consequences of damage to third parties while carrying out your activity.

The insurance will cover the following costs:

  • Defense costs in case of legal proceedings (fees of experts and lawyers)
  • Compensation material damage (property damaged or destroyed), non-material damage (financial loss following delay in performance) or personal injury (injury, death.)

FYI  

Remember to inquire to make sure that you are not already insured for your professional liability as part of your home insurance.

The average annual cost of your insurance varies depending on your revenue (CA), for example:

  • If you have an annual CA of €250,000, insurance costs on average €350
  • If you have an annual CA of €500,000, insurance costs on average €450
Financial guarantee

When you hold funds, shares or real estate securities that belong to your customers (for example, a security deposit), you must purchase a financial security.

This guarantee must be of one amount equal to or greater than financial resources that you hold.

The annual cost of the guarantee is on average €850.

Even when you are not required to insure for your business or premises, it is strongly recommended to subscribe to insurance to guarantee certain risks. We've given you some examples.

Supplementary health insurance for the head of company

You can purchase health insurance that allows you to select levels of reimbursement for the types of care you choose. This could include medical care, dental and optical equipment, and hospitalization.

You will be able to benefit according to the plan you choose of the following benefits :

  • Reimbursement in case of overpayment of fees
  • Support for certain dental care and orthodontic treatment of your children
  • Reimbursement of eyeglass lenses, whether or not complete

The cost of insurance will vary depending on your activity and options that you choose.

Micro-insurance

Microinsurance provides access to insurance contracts at reduced cost and that meet the needs of a VSE. VSEs are defined as companies employing less than 10 employees and of which annual turnover or total balance sheet is less than €2 million.

To benefit from it, you must answer certain conditions :

  • Be at the beginning of the activity
  • Not needing to build up large stocks
  • Be followed by a company creation network with funding

It allows choose warranties, for example professional liability, supplementary health.

You can contact a insurance company who can advise you and offer you insurance adapted to your activity. You can go to an agency or register online according to the companies.

Alternatively, you can use a insurance broker who will act as an intermediary between you and the insurance companies. They can guide you in your insurance choices.

The Central Pricing Office (BCT) also plays an important role in your search for an insurer. When an insurance company refuses to insure your company for a risk that needs to be insured, you can enter the Central Pricing Office. It sets the premium at which the designated insurance company must guarantee the risk.

Who shall I contact

  • Central Pricing Office

    By telephone

    +33 (0)1 53 21 50 40

    9:00 to 11:45

    By E-mail

    bct@agira.asso.fr

    By mail

    1 Jules Lefebvre Street

    75009 Paris

The Central Pricing Office shall be competent only for the following insurance:

  • Motor vehicle civil liability
  • Construction insurance (ten-year liability/work damage),
  • Insurance against natural disasters
  • Medical liability insurance
  • Liability insurance for tenants, co-owners and condominium syndicates.