Every business is subject to more or less significant potential risks and damages. In this connection, it is advisable to protect yourself by taking out suitable business insurance. Here’s everything you need to know.
Professional insurance definition: what are we talking about?
The term commercial insurance includes all the insurance contracts that a company can take out in connection with its business. For a regular contribution, the insurance company pays compensation in the event of a specific event, such as an accident or injury. It should be noted that the amount and terms of the compensation (payment of an excess, compensation ceiling, nature of the risk, etc.) are contractually determined.
A professional insurance contract can cover:
- THAT injury in connection with the performance of the activity which may involve the company’s civil or legal liability;
- THAT estateproduction tools or business premises, in case of damage not caused by third parties;
- THAT natural persons bodily injury and risk of illness, death and disability.
However, insurance companies generally offer professional multi-risk insurance that covers both liability, property and persons.
Why should you take out business insurance?
It is highly recommended to take out professional insurance. In fact, the mistake, negligence or imprudence of the company or one of its employees can lead to bodily, material or moral damage and lead to significant financial consequences or even lead to bankruptcy. Proper insurance gives companies the opportunity enjoy significant protection.
In some cases, it is to take out professional insurance a legal obligation. It all depends on the activity performed. For example, health professionals (general practitioners, nurses, physiotherapists, psychologists, podiatrists, etc.) are required to take out a specific professional liability insurance, called medical liability insurance. Legal professionals, those in the construction and public works industry, estate agents, travel agents or even architects must also be insured. Alongside this, it is essential to secure your professional premises, regardless of the company’s activity.
How do you choose your business insurance?
It is essential to take out professional insurance tailored to your company’s needs and the related legal obligations. Before entering into a contract, you must first define what the organization needs and state the potential risks associated with the activity (personnel, property, liability, etc.). Once that is done, it is advisable to inquire with different insurance organizations and this to compare the proposed offers.
The rate of the contributions should not constitute the only criterion for the selection of the offers. The analysis must first of all focus on the extent of the risks covered by the guarantees, the amount of the excess (amount that the insured must pay in the event of damage) and the exclusions (situations that the insurance company does not cover). Note that it is possibleuse an online insurance comparator or to call a broker to take out the insurance contract that best suits their situation.
(Photo credit: iStock)