When carrying out a professional activity, whether independent or within a company, it is essential to take the necessary measures to protect your activity from risks and unforeseen events. For this, it is advisable to take out professional insurance which offers financial protection in the event of a claim or dispute. In this post, we will explore the reasons why you should adopt this type of insurance.
Guarantee financial protection in the event of a claim
As its name suggests, professional indemnity insurance is a form of insurance cover specifically designed for protect businesses and professionals from the various risks related to their activities. The main benefits of professional insurance is that it provides financial protection in the event of a claim. Indeed, whether in the event of a fire, theft, material damage, or any other unforeseen event, professional insurance will allow you to cover the costs related to the repair or replacement of your professional property. This includes in particular your materials, equipment, stocks, as well as premises or professional vehicles.
Cover work responsibilities
The exercise of a professional activity often entails legal and civil responsibilities. In the event of an accident, injury or damage caused to a third party in the course of your activity, you may be held responsible and face claims or legal proceedings. This is where professional indemnity insurance also comes into play. Indeed, you will be protected from claims by third parties related to bodily injury, material or immaterial damage resulting from your activity, because your insurance will cover:
- Legal defense costs;
- Compensation;
- Any repair or refund costs you may incur.
In short, having professional liability insurance will allow you to concentrate fully on your activity, without fearing situations that could put you in difficulty.
Meet contractual requirements
In some cases, taking out professional indemnity insurance can be a contractual requirement as you can see ici. Indeed, customers, business partners and suppliers usually ask for proof of certain insurances before entering into a contract. This may include professional liability insurance, ten-year insurance (in the case of building professionals), transport insurance or any other form of insurance specific to your activity. By subscribing to professional insurance, you will be able to meet these contractual requirements and give your business partners confidence.
Protect your employees
If you have employees in your business, it is important to take all necessary measures to ensure their well-being. For this, you can subscribe to a company mutual which will enable them to benefit from supplementary coverage to their compulsory social security scheme. Very beneficial, this will allow them to access reimbursements and additional services such as more comprehensive coverage of medical consultations, medication, hospitalization costs, dental and optical care, etc. In addition, subscribing to a mutual company can also be advantageous from a tax and social point of view. Indeed, some employer contributions are exempt from social charges, which represents a financial advantage for the employer. In short, by opting for a mutual company adapted to the needs of your employees, you will strengthen your attractiveness as an employer and will benefit from significant tax advantages.
