May 5 2017
Certain types of pollution, such as those related to the presence of asbestos, must be the subject of specific insurance policies. But what types of business insurance deals with liability? Should companies choose professional liability over compulsory civil liability? To determine which is best for your company. Continue reading.
Professional liability is an optional type of insurance. With the exception of certain professions, it is necessary for nearly every company. It covers all bodily, material or immaterial damages caused to third parties (customers and suppliers) by the head of the company, its employees, premises or machines during day-to-day activities or after the delivery of products. Damage created by products or activities that do not meet the standards or safety requirements are excluded.
The amount of the premium depends on the turnover, the sector and the nature of the company's activity, depending on the risks involved, of course. In the event of damage, the company must send a claim to its insurance agency, which includes the complaint received from its customer or supplier. The company negotiates on behalf of the company with the plaintiff to find common ground in case of minor damages. In the case of heavy claims, experts will assess the amount of damage. For VSEs, insurers offer lump-sum premium amounts.
Compulsory civil liability insurance is a must for certain sectors. Construction professionals are obliged to take out ten-year liability insurance policies, which covers damages found within ten years of service. This insurance applies when damages affect the strength of the structure (water infiltration inside the roof, the collapse of a balcony, etc.) or those that lead to serious nuisances. Even though this type of insurance is compared to personal insurance, the two are nothing alike.
Underwriting of professional indemnity insurance is compulsory for certain professions dealing with healthcare (doctors, nurses, support staff, etc.), law (lawyers, notaries...) or for real estate agents, travel agencies, accountants, etc. It covers damages caused to third parties in connection with their day-to-day activities (errors in prescriptions handed out, operational risks), risks linked to the disappearance of funds sent by private individuals or risks specific to certain professions (deterioration of furniture by moving companies or accidents for lift operators).
These various insurance solutions are certainly very useful, but companies have to put insurance back in the right place when it comes to the risk management process of the company. Because of this, proof that the relationship between the insurer, the intermediary, and the insured becomes more comprehensive. For more information, contact a local insurance agent today.