A business represents a significant investment that deserves to be covered in the event of danger. For this, most entrepreneurs turn to insurance companies to find the best deal for their business. Among the solutions offered by the latter is multi-risk professional insurance. This is a service that guarantees coverage of many categories of damage in order to preserve the finances of the company and the insured. Find out what this insurance is and the advantages of subscribing to it.
Professional multi-risk insurance: general information to know
A professional multi-risk insurance is a contract between a professional and a insurance company. It guarantees a cover optimal use of his company’s assets and activities. It can also, in certain cases, cover its civil liability and is chosen according to the nature of the activities of the insured company. With this contract, the company therefore benefits from a compensation from his insurer in the event of sinister instead of bearing the costs by itself.
Who is it for?
L’professional multi-risk insurance applies to all businesses. These are basically Very Small Enterprises (TPE) and Small and Medium Enterprises (SME). Associations or social communities are also concerned. Professional multi-risk insurance applies to companies, regardless of their industry. Thus, whether you are a farmer, in the field of construction, trader, liberal professional or even in the medical profession, you can request this insurance solution.
Is it compulsory to take it?
L’professional multi-risk insurance it’s not mandatory. However, the warranties related to civil risks it includes are necessary for professions subject to a legislative and regulatory framework. These are primarily jobs relating to health and personal travel. Companies offering tourism services, those with a car fleet, legal professionals, construction workers, etc. are similarly affected. Not having insurance professional offering the best coverage exposes the company or the liberal professional to penalties in the event of damage.
Also read: How to find ten-year insurance for a closed business?
Why take out professional multi-risk insurance?
A professional multi-risk insurance (MRP) protects you against incidents for which your company could be held responsible, but not only. Damage that may affect it or jeopardize the proper functioning of your business is also taken into account. These are mainly cases of fire, natural disasters, theft or defective equipment. The forms of guarantees can be classified into two broad categories.
Warranties in the event of damage
- Fires and related risks
These are cases of fire that originate in your premises and spread to neighboring properties. This type of damage can cause various additional risks such as the deterioration of your own property, as well as that of others, with the possibility of death.
- Natural and other disasters
The risks of natural disasters are often assessed based on the location of your premises. These can be earthquakes, floods, storms or health crises. They are also studied at the time of signing your contract. professional multi-risk insurance.
- Cases of riots or popular uprising
Riots and popular uprisings are assimilated to urban violence. This is a situation that represents a real risk for a company. The list of damage caused during this type of event is generally long and above all very heavy in terms of cost. Since this situation is unpredictable and most often results in extreme violence against both people and property, it is better to be covered by MRP insurance. Note, however, that the thefts (lootings) recorded as part of these popular movements are not always reimbursed, even if your professional insurance includes a theft guarantee.
- Collapse of buildings
It may happen that the building of your company collapses without causing an earthquake. This may be related to poor quality foundations or an incident. In this case, your multi-risk insurance will protect you against possible damage that this situation could cause. Most of the time, the compensation is financial.
L’professional multi-risk insurance guarantees you the coverage of damages caused in the event of theft and vandalism within your company. This also concerns the costs of reconstructing administrative documents and the legal investigations to be carried out to find the perpetrators of these acts.
- Defective working materials
Your professional multi-risk insurance ensures the maintenance of your work equipment in the event of breakdown or incident. Thus, you do not have to spend additional costs for their repair.
- In case of destruction of material during transport
It may happen that the materials or goods offered by your company are damaged during their transport to your premises. This is often a real problem for many entrepreneurs. They are forced to invest additional costs in order to repair the damage. You avoid this kind of situation by opting for professional multi-risk insurance.
The additional services of a professional multi-risk insurance are guarantees that it offers depending on the area of activity of the insured company. These are for example:
- Assistance and breakdown services
They allow you to find service providers for repairs of all kinds that may exist within your company. This also applies to babysitting services. In addition, you benefit from legal assistance in the event of a dispute following a claim or vis-à-vis a client.
- Professional civil liability insurance
Called again RC professional, it protects the company and its workers from the possible consequences that could arise from their activities. Thus, the compensation costs demanded by the customer and those of defense are covered by the insurance. Professional Liability. This is also compulsory for all workers.
- The guarantee of loss operating
It compensates the insured in the event of interruption of his activity following an incident, guaranteeing him a financial guarantee or even credit insurance. This allows you to protect your company’s finances in the event of major damage.