When you start your own business, you can sometimes find yourself at a loss when it comes to insurance issues. Today, we'd like to take a closer look at professional liability insurance. Who is it for? What does it cover? Is it compulsory? Here's how it works.
What is professional liability insurance?
L'rofessional liability insuranceis an insurance policy designed to protect professionals against the risks associated with their business. It covers damage caused to third parties in the course of professional activity.
What does professional liability insurance cover?
Professional liability insurance covers various types of damage caused to third parties in the course of professional activity:
- Material damage: from loss to breakage, this type of problem entitles those concerned to claim compensation that can be directly valued in money.
- Immaterial damages: there are two types. Consecutive immaterial damage, which is the direct result of damage (bodily injury or material damage), or non-consecutive damage, which is not the result of any other damage.
- Bodily injury: when the physical integrity of the person is affected.
A few concrete examples
For example, if a lawyer commits a professional error that causes prejudice to his client, professional liability insurance will cover the damages and interest that the lawyer must pay to his client.
The same applies if an IT expert makes a code error that renders a commercial site unavailable for several hours. RC Pro will pay compensation to the victim company.
Is it compulsory to take out professional liability insurance?
Professional liability insurance is mandatory for certain regulated professions. These include architects, lawyers, doctors and real estate agents. We invite you to take a look at Government website to see if your activity is concerned.
However, even if it is not compulsory, it is strongly recommended that you take out professional liability insurance to protect yourself against the risks associated with your professional activity.
How to choose your professional liability insurance?
It's important to choose the right professional liability insurance for your business. It's particularly important to be accompanied in this process, and to take the time to carefully study the coverage offered and any exclusions.
For example, Stello already assists over 10,000 professionals with their professional liability insurance needs. They offer tailor-made quotes to suit your business and your needs. In addition to a deeply human approach, they provide rapid coverage, with teams on hand to deal with any problems that may arise.
How much does professional liability insurance cost?
The cost of professional liability insurance varies according to a number of criteria, such as the nature of yourbusiness, your turnover and the number of employees. Although it is difficult to give an average cost for this insurance, prices start from from around €15/month per month.
As you will have gathered, professional liability insurance is essential to protect you against the risks associated with your business activity, whatever it may be. It covers damage caused to third parties, whether material, immaterial or bodily. It is therefore important to choose your insurance depending on your field of activity, and to study the coverage offered to ensure you're properly protected.