Business insurance
Verified 22 September 2023 - Legal and Administrative Information Directorate (Prime Minister)
Taking out professional insurance is not always compulsory. It all depends on the situation of the business and the activity.
A business must take out certain insurance depending on its 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
The business must take out insurance for vehicles owned or leased by the company.
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.
Insurance must be taken out with a company which is authorized to carry out insurance operations for motor vehicle accidents.
The cost insurance varies depending on the number of vehicles the business uses.
Insurance of the premises
If the business is tenant of premises, she duty take out insurance. It may cover the company's equipment, facilities and stocks.
It allows it to cover the damage caused by certain events. These are typically the following risks:
- Fire
- Explosion
- Water damage
- Natural disaster
The insurance may also cover other risks depending on the needs of the business: theft, offense, etc.
The cost the insurance varies according to the size of the premises and the municipality in which they are located.
FYI
If the business owns its premises, it is not subject to the insurance obligation of the premises, although this is strongly advised.
Employee insurance
Well, if the business has employees, it must take out a called insurance supplementary social protection of employees to enable them to benefit from mutual assistance.
It must participate in height of 50% minimum the financing of the mutual society of its employees. The business negotiates the insurance contract with the insurer it has chosen. It therefore has the possibility of extending the benefit of this social protection to the children and spouses of its employees.
The cost insurance varies according to the number of employees and the turnover of the business.
Business Assurance
If the business exercises regulated activityYes, she most certainly subject to an insurance obligation.
Here are some examples of regulated professions that are affected by this insurance obligation.
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Legal professionals
Professional indemnity insurance
The business is subject to the obligation to subscribe to a professional indemnity insurance (CPR).
This insurance covers damage to third parties in the exercise of that activity (for example, the consequences of an appeal that was made out of time). It includes the following guarantees:
- Defense costs (fees of experts and lawyers)
- Damages :
- Material damage (e.g., well damaged or destroyed)
- Non-material damage (e.g. financial loss)
- Personal injury (injury or death)
The cost insurance varies according to the number of employees and the turnover of the business.
Healthcare professionals
Medical liability insurance
The business is concerned if it belongs to one of the following categories:
- Health care facilities
- Company or association which carries out preventive, diagnostic and/or care activities
- Health product producer, operator and supplier
It must take out insurance for protect against damage third party during the pursuit of the professional activity (e.g. diagnostic error or delay, choice of treatment not appropriate to the patient’s condition).
It also covers employees when they act in the course of their duties.
The cost insurance varies according to the number of employees and the turnover of the business.
Construction professionals
Professional indemnity insurance
The business is subject to the obligation to subscribe to a professional indemnity insurance (CPR).
This insurance covers damage to third parties when carrying out this activity. It includes the following guarantees:
- Defense costs (fees of experts and lawyers)
- Damages :
- Material damage (e.g., well damaged or destroyed)
- Non-material damage (e.g. financial loss)
- Personal injury (injury or death)
The cost insurance varies according to the number of employees and the turnover of the business.
Ten-year liability insurance
When the business is builder of a building, it is 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 liability.
Thus, it must take out insurance to cover this liability.
The cost insurance varies according to the number of employees and the turnover of the business.
Real estate agents
Professional indemnity insurance
The business is obliged to take out a professional indemnity insurance (CPR).
This insurance allows the business to cover the financial consequences of damage to third parties during the exercise of his activity (for example: a customer is injured in his agency).
The insurance will cover the following expenses:
- Defense costs in case of legal proceedings (fees of experts and lawyers)
- Compensation material damage (e.g. property damaged or destroyed during a customer's home visit), non-material damage (e.g. financial loss due to lack of advice) or personal injury (injury, death)
The cost insurance varies according to the number of employees and the turnover of the business.
Financial guarantee
Where the business holds funds, shares or real estate securities that belong to its clients (for example, a security deposit), it must subscribe to a financial security.
This guarantee must be of one amount greater than or equal to financial resources which she holds.
The cost annual guarantee is on average of €850.
Even when the business is not required to insure for your business, it is strongly recommended to subscribe to insurance to guarantee certain risks. We've given you some examples.
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General case
Liability insurance of the manager
It is possible to take out civil liability insurance for the manager to protect it from the consequences of decisions which he took in the name of the business.
This insurance may cover defense costs of the director in civil, criminal or administrative proceedings where he is held liable.
It can also cover the amount of civil convictions any that it may be subject to.
Key Man Insurance
This insurance is intended to protect the company when a key man is incapacitated for permanent or temporary work. This may be the manager or a staff member who is essential to the functioning of the business.
This insurance makes it possible to to compensate for operating losses which may result from the inability to work of this key man.
Very small company (TPE)
VSEs are defined as companies employing less than 10 employees and of which annual turnover or total balance sheet is less than €2 million.
Micro-insurance
Microinsurance provides access to insurance contracts at reduced cost and that meet the needs of a VSE.
To benefit from it, you must answer under the following 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.
Liability insurance of the manager
It is possible to take out civil liability insurance for the manager to protect it from the consequences of decisions which he took in the name of the business.
This insurance may cover defense costs of the director in civil, criminal or administrative proceedings where he is held liable.
It can also cover the amount of civil convictions any that it may be subject to.
Key Man Insurance
This insurance is intended to protect the company when a key man is incapacitated for permanent or temporary work. This may be the manager or a staff member who is essential to the functioning of the business.
This insurance makes it possible to to compensate for operating losses which may result from the inability to work of this key man.
The insurance companies advise businesses and offer guarantees adapted to the activity carried out. It is possible to go to an agency or make an online membership according to the companies.
Another possibility is to use a insurance broker which will act as an intermediary between the business and the insurance companies. It can also guide business in its insurance choices.
The central pricing office also plays an important role in supporting businesses in their search for assurance. Where an insurance company refuses to insure a business for a risk that should be insured, the business may refer the matter to the Central Pricing Office. It sets the premium at which the designated insurance company must guarantee the risk offered to it.
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.
Bpifrance