Professional liability insurance for self-employed entrepreneurs: mandatory ?
To protect his activity, an autoentrepreneur (also called microentrepreneur) can contract different insurances. The professional liability insurance (RC pro) is the basic coverage to subscribe. What risks does it cover? ? Is this insurance mandatory for a microentrepreneur? ? What is its price ? Where to get one ? Find out the answers to these questions below.
What does the insurance cover? Professional liability insurance ?
As a microentrepreneur, your personal liability is committed in case of claim or damage caused to a third party. This status implies an unlimited responsibility. 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 entrepreneurs is intended to avoid this type of situation. It covers all kinds of damages that you can cause during the exercise of your activity. In detail, this insurance covers :
- Damages bodily injury such as injuries, death, etc. ;
- Damages materials such as the total or partial destruction of goods;
- The damages immaterial like the financial losses caused by a bodily or material injury.
The professional liability insurance covers 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 the event of a dispute with a client.
Autoentrepreneur: am I obliged to’To subscribe to it ?
The obligation to take out an insurance policy professional civil liability insurance for self-employed contractors depends on the activity you carry out. This coverage is notably unavoidable if you work in :
- Construction, public works or housing;
- Automobile ;
- Transport ;
- Sport, leisure or culture ;
- Health and well-being;
- Insurance and financial services.
This is not an exhaustive list. To know if you have to subscribe to a professional liability insurance, go to your CFE (Centre de Formalités des Entreprises).
In short, professional liability insurance is not mandatory for all activities 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 client sues you, you will have to bear significant costs and pay any compensation yourself if you are not covered. This insurance is thus essential for protect your activity. It can be completed by a cybersecurity insurance.
The latter covers risks related to a cyber attack such as the loss of customer data.
On the other hand, the professional liability insurance is a good way to protect your business A proof of seriousness for your prospects. The latter will be more inclined to work with you, because they will be reassured by knowing that it will be possible to make use of the insurance in case of problem during your service.
How much does a professional liability insurance cost? ?
The cost of a professional liability insurance auto-entrepreneur is on average 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 human services, it can reach 200 euros per year.
When you take out your professional liability insurance, remember to check the following points:
- Risks covered;
- Optional coverages;
- Warranty exclusions;
- The adaptation of warranty amounts to the risks incurred;
- The amount of the deductible.
Who do we subscribe to?
The subscription of a professional liability insurance microentrepreneur can be made at a traditional insurer. It is also possible to take out an insurance policy online with brokers like 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 is done in 3 minutes;
- Can be done at any time and in any place. All you need is an internet connection.
By choosing a professional liability insurance online, you will also be able to modify your policy, purchase additional options, easily reach an advisor, etc. It should be noted that each of these procedures is subject to optimal security.