Professional liability insurance

Professional liability insurance


If there is one essential insurance for business owners and entrepreneurs, it is professional liability insurance. By taking out this contract, you offer protection to your business. In the event of damage caused to a third party in the professional context, the resulting financial consequences will be covered. Is it mandatory to take out professional liability insurance? What guarantees are included in the contract? What is the price of this insurance? Update on the RC Pro in this article.
Is professional liability insurance compulsory?

Also called RC Pro, professional liability insurance allows you to protect your business against damage it may cause to a third party. It is compulsory for regulated professions, that is to say professions framed by specific legislative and regulatory provisions. If you practice one of the following professions, you must take out this insurance:

    Health professional (doctor, dentist, osteopath)
    Legal professional (lawyer or jurist)
    Building professional
    Accountant
    ....

Find out more about the activities involved in taking out compulsory professional civil liability

If you are in an unregulated profession, you are under no obligation to purchase RC Pro insurance. Note, however, that taking out this guarantee is to offer additional security to your company, whatever your field of activity. It will be useful to you in the event of error, fault, forgetfulness, omission, and negligence.
Professional liability insurance guarantees

The professional liability insurance contract includes several guarantees, some of which are automatically included and others added. Here are the guarantees of RC Pro insurance:
Professional civil liability

All bodily, material or immaterial damage suffered by a third party as a result of your business and in the course of your activity is covered by professional liability insurance. Whether the damage is caused to a customer, a supplier, a partner, a subcontractor or a person not contractually bound with your company, the damage they suffer during the performance of one of your services is Covered.
Operational liability

The purpose of the operating civil liability guarantee is to cover damage caused to a third party by your business in the course of your normal activities (apart from the performance of a service). It may be damage that you cause as a manager or damage caused by your employees, other than service. Please note, unlike RC Pro, this warranty is provided for the operation of your business.
Civil liability after delivery

There is also what is called post-delivery liability. It covers damage caused after delivery of a product or after completion of a service. For this warranty to be activated, there must be a manufacturing defect, a hidden defect, poor packaging or a lack of information.
Criminal defense and remedies

All defense costs linked to a dispute are covered by this guarantee. This allows you to choose your lawyer within a budget defined by the insurance. Generally, this guarantee is included in the RC Pro insurance contract, and if this is not the case, you can request that this guarantee be added to your contract.

It is activated when the responsibility of your company is not clearly established. It is also necessary to distinguish between defense action and appeal action. The defense action is when the criminal and civil defense of the company is taken care of by the insurer, and the recourse action is when the company has suffered damage. Insurance will accompany the company to obtain redress.
Legal protection

Finally, another guarantee that is often found in the RC Pro contract is legal protection. According to Article L127-1 of the Insurance Code, legal protection covers the defense and representation of the insured. This insurance allows you to benefit from legal advice. In the event that a dispute cannot be resolved amicably, you may obtain the services of a lawyer.
More guarantees

Depending on your industry, you may need insurance.