Self-employed professional liability insurance: mandatory ?
To protect his activity, an autoentrepreneur (also called microentrepreneur) can contract different insurances. Professional liability insurance (RC pro) is the basic coverage to subscribe to. What risks does it cover ? Is this insurance mandatory for a microentrepreneur? ? What is its price ? Where to subscribe ? Discover the answers to these questions below.
What does the’professional liability insurance ?
As a microentrepreneur, your personal liability is committed in case of claim or of damage caused to a third party. This status implies an unlimited liability. In concrete terms, your personal assets may be seized if you cause damage in the course of your professional activity.
L’professional liability insurance for self-employed workers is intended to avoid this type of situation. It covers all kinds of damage that you can cause during the exercise of your activity. In detail, this insurance covers :
- Damages bodily injury such as injury, death, etc. ;
- Damages materials such as the total or partial destruction of property;
- Damages immaterial as well as financial losses caused by bodily injury or material damage.
The professional liability insurance covers the following indemnities to be paid to a third party if you cause any of these damages. The conditions of the coverage are indicated in the contract subscribed. This insurance also provides protection in case of litigation with a client.
Autoentrepreneur : am I obliged to’subscribe to it ?
The obligation to subscribe to a professional liability insurance autoentrepreneur depends on the activity you carry out. This coverage includes unavoidable if you work in :
- Construction, public works or housing ;
- Automobile ;
- Sport, leisure or culture ;
- Health and well-being ;
- Insurance and financial services.
This is not an exhaustive list. To find out if you need to take out professional liability insurance, contact your insurance company CFE (Centre de Formalités des Entreprises).
In short, professional liability insurance is not a substitute for insurance not mandatory for all activities. For example, it is optional for an external DPO (Data Protection Officer). As a reminder, this professional is in charge of ensuring the RGPD compliance of an organization.
In any case, it is strongly recommended to take out a professional liability insurance even if your activity does not require it. If a customer sues you, you will have to bear the costs and take care of the eventual compensation yourself in case you are not covered. This insurance is therefore essential for protect your activity.
It can be completed by a cybersecurity insurance. It covers risks related to a cyber attack such as the loss of customer data.
On the other hand, the microentrepreneur professional liability insurance constitutes a guarantee of seriousness to prospects. The latter will be more inclined to work with you, because they will be reassured by knowing that it will be possible to use the insurance in case of problem during your service.
How much does a professional liability insurance cost ?
The cost of a professional liability insurance for self-employed entrepreneurs is established on average at 100 euros per year. It varies according to the sector of activity. For example, for a photographer, this insurance costs about 50 euros per year.
In the field of personal services, it can reach 200 euros per year.
When you take out your professional liability insurance, remember to check the following points:
- The risks covered ;
- The optional guarantees ;
- Exclusions of coverage ;
- The adaptation of the amounts of guarantee to the risks incurred;
- The amount of the deductible.
With whom do we take it out ?
The subscription of a professional liability insurance microentrepreneur can be done with a traditional insurer. It is also possible to take out a professional liability insurance online with brokers such as Assurup. The online subscription has undeniable advantages:
- More attractive rates. These lower prices are made possible by the absence of operating costs on the Internet ;
- Speed of the process. At Assurup, for example, it can be done in 3 minutes;
- Can be done at any time and in any place. It is sufficient to have an internet connection.
By opting for an online professional liability insurance, you will also be able to modify your contract, subscribe to additional options, easily reach an advisor, etc. It should be noted that each of these procedures is subject to an optimal security.