A broken laptop computer, destroyed property, the disability of a person caused by an accident in the workplace… are all risks present in the workplace. All of this damage can engage the professional liability of a business manager and involve very heavy repair costs. Reimbursement of these repair costs can lead a company to bankruptcy, there are provisions to take to protect yourself. Taking out RC pro insurance is a solution to consider. It covers any professional when his civil liability is involved in an incident. It is therefore of paramount importance for your business. This provision, being quite beneficial for any company, discovers 5 good reasons to take out RC pro insurance.
You are a business owner, you need RC pro insurance
According to criminal law, civil liability constitutes the legal obligation of a natural or legal person to repair the harm caused to others. It is applicable for both individuals and businesses. In either case, civil liability insurance makes it possible to reimburse the victims involved in the incidents caused, as a remedy. In the case of a company, we speak of professional liability insurance or RC pro. It is then very important for companies and prevents them from paying heavy sums to repair their wrongs.
If you are a business manager and you care about the good and the evolution of this one, I advise you to subscribe to it. Even if it is only recommended for certain professionals, you should know that for others it is mandatory. Therefore, before boycotting it, you must know your position in relation to this legal provision. Taking out RC pro insurance is actually a legal obligation for regulated professions. All professionals in the sectors concerned must then have them so as not to suffer the rigors of the law.
This insurance is mandatory for these trades because of the scale of the risks to which they are subject. As compensation for damage can be expensive, professionals could be tempted to flee their civil responsibilities. On the other hand, with the RC pro insurance which covers them, the cases of injustice will be reduced.
In addition, it should be noted that the subscription of a RC pro insurance allows a company to be in good standing vis-à-vis the law. It thus avoids paying penalties which can sometimes be very high. In addition, for a company, the advantage of an RC Pro insurance constitutes the credibility it offers in the eyes of customers. They are indeed serene and confident, dealing with a reliable company. This status will allow you to retain your customers, but also to win a large number of them. This advantage concerns both regulated professions and other professions for which RC pro insurance is not compulsory.
RC pro insurance covers your legal costs if you are sued
One day in performance of your duties, you may have a dispute with an employee or partner. If some of them can turn a blind eye to these, others on the other hand will be much less lenient. These can in the best of cases ask for amicable compensation. However, the most demanding can initiate litigation against your company. In this case, you will have to face justice, which will then involve many costs. These include court costs, lawyers’ fees and possibly damages. In such a situation, if you have a RC pro insurance contract, you will have nothing to fear.
Indeed, in a legal procedure in which your business is involved, your insurer has an obligation to cover you. For this purpose, he will have to pay all the costs of justice and defense lawyers. If after the trial the court condemns you to pay for the damage caused, your insurer will also have to take care of it. He will then pay the defined sum to the person who brought you to justice.
However, it is possible that the cost of the damage is quite high and exceeds the only provided for by the insurance contract for your coverage. In this case, you will have to pay the difference, from your company’s funds. Moreover, even if court costs and lawyers’ fees are very high, your insurer will have to pay them, regardless of your coverage limit.
It should be noted, however, that the insurer may refuse to cover in the event of a lawsuit, in certain circumstances. In this case, you will be solely responsible for the financial consequences of your actions. I therefore advise you to take note of these details when signing your contract. This will then tell you what to do in case of problems.
RC pro protects you against malpractice claims
On a construction site or during an expert mission, it can happen that your company makes mistakes in the execution of its tasks. Its civil liability can be engaged in several circumstances. I offer you examples in various professional situations.
In the legal sector, lawyers, bailiffs and notaries are subject to compliance with:
- the obligation to provide advice,
- the obligation to provide quality services.
In case of breach of any of these rules, the professional concerned will have to face his civil responsibilities. The aggrieved customer could indeed complain to have a repair. The RC pro insurance will then have to take care of compensating the latter to avoid legal recourse.
Among professionals in the real estate sector, the risk is also present. The real estate agent has the obligation to provide all the important information on a property, to his buyer. If he omits one that he discovers after the sale, he could question the cost of the transaction and pursue the professional. To avoid a complaint to justice for lack of advice, the insurer will cover the civil liability of the real estate agent by compensating his client.
Even in the field of tourism, the subscription of an insurance RC pro is obligatory. The reason is that an agency can be attacked by an entrepreneur, during his journey. It is in fact possible that during a hike organized by this travel agency, the plaintiff would fall and be seriously injured. If this injury immobilizes him and causes big losses of money, he can complain about poor organization in an attempt to obtain redress. This can then cost you dearly as a professional, but the insurance will take care of it for you.
These situations can arise in other regulated professions and also in the field of insurance. Even professionals who are not obliged to take out RC pro insurance can be confronted with it. I advise you to prevent this instead of putting your business in danger.
RC pro insurance covers loss of income
Another reason to take out RC pro insurance is that it allows you to benefit from protection in the event of loss of income. This can occur in various situations. Initially, a financial loss may be occasioned by a delay in the execution of tasks in a mission. It can also be due to an error in the services or bad advice given to a client. Any loss of income that would have been caused by this situation must be covered by the insurance.
Secondly, the consequences of poor recruitment can lead to loss of income. Indeed, duringbeing hired by a recruiting firm, the agent may omit to verify the information on the candidate’s CV. When after 6 months of work the employer discovers a deception on the diplomas of the latter, he will have to terminate his contract. The financial losses caused by his poor performance, as well as the costs related to the search for his replacement will then be borne by the insurer.
Moreover, in the case of a company which has just been born, compensation and defense costs in a legal case can be very heavy to carry. In the absence of RC pro insurance, she risks leaving all her income and financial capital there. On the other hand, with an insurance contract, it can be protected and operate peacefully.
Coverage of personal and professional liability by RC pro
In a company, errors or negligence can come from everyone. In this case, it is the civil responsibilities of the company and its manager that are at issue. The RC pro insurance will then cover the entrepreneur as a person, but also the company and everything that makes it up. However, the damage must be caused in the workplace or in the performance of a task by:
- one of your employees,
- a subcontracted person,
- a tool or object belonging to the company,
- a machine rented by the company,
- animals belonging to the professional (a guard dog or livestock on a farm.
Any damage caused by one of these elements or people will be automatically covered by the RC pro insurance. It then protects the RC of the manager or the person in question, but also that of the company. There are indeed many situations in which RC pro insurance can save your business. Even if you own a restaurant, I advise you to think about it before recording customer food poisoning, which could happen at any time.