Imagine one of its employees, in a mission to a client, who accidentally overthrows a liquid in expensive equipment. Or, a subcontractor causes unforeseen damage during an intervention for your business.
In these situations, a crucial question arises. Who is really covered by RC Professional? Are these damages under your responsibility or that of your client?
This type of case deserves all your attention, because a misunderstanding could expose your business to considerable financial risks.
Who is really covered by RC Professional?
Although it is not legally mandatory, professional civil liability (RC Pro) is a highly recommended insurance to protect your business against the financial consequences of damages caused to a third party. But did you know that your reach can vary according to the parties involved? We decipher what it means to your employeeshis subcontractors and you commercial partners.
Your employees? Naturally
In most cases, its employees are covered by the professional RC of your company When they act as part of their functions. This includes incidents such as errors, omissions or material damage caused during your work. For example :
• A seller who break an object With a client during a demonstration.
• An administrative employee who Send erroneous information to a partner, resulting in financial damage.
However, we recommend that you check the limits of your insurance policy. Because unfortunately, some exclusions can be applied, in particular In case of intentional act or serious negligence of an employee.
How to know if it is covered correctly? Take your insurance policy and see the chapters related to exclusions. If you are not familiar with the language and the terms used, do not hesitate to communicate with your insurance and explain these detailed and exhaustive elements.
Whether you have a professional RC or that you still need advice before committing, do not hesitate to communicate with our business RC advisors who will be delighted to illuminate it.
Your subcontractors? It depends
The situation of subcontractors is often less clear. And to know if they are really covered by their professional RC, it is imperative to verify the terms of their insurance contract. Each insurance company has its own exclusions and specific terms, so there is no general rule on this subject.
However, these answers are correct in many cases:
• If the subcontractor acts under his directives and on behalf of his company, some RC policies may include it.
• If the subcontractor works independently, he must have his own professional responsibility insurance.
Take a specific example. Your subcontractor is repairing your client's facilities and causes damage. If the latter is considered independent, your professional RC will probably not cover this incident.
Your business partners? Not…
When we talk about commercial partners, we think about their suppliers or distributors. There is a small opportunity, but very often zero, so that they are covered by their professional RC.
As a completely “separate” business from yours, therefore, they are responsible for their own actions and must obtain insurance adapted to their needs. However, if the damage occurs As part of a nearby collaborationIt is crucial to clarify the responsibilities in advance in a contract. The clarification of these elements will avoid many problems in case of an incident or accident …
For example, a supplier (= commercial partner) delivers its product to its final customer, but the product arrives defective or damaged. In this case, it is the civil liability of the supplier that will be involvedIt is not your professional RC.
Clarify your blanket and avoid unpleasant surprises
A simple misunderstanding, or an unconception belief, with respect to the limits of your professional RC can lead to unpleasant surprises. As long as it is not exactly in the light of what RC professional covers, it runs the risk of having to assume significant costs in case of a dispute or damage.
From our experience and the many situations lived by our clients, we give 3 valuable surveillance tips:
1. Avoid gray areas: Make sure your insurance policy clearly mention the covered and not covered parts. If necessary, adapt your coverage insurance company or change if you do not allow enough security.
2. Protect your cash flow: Insufficient coverage can endanger the financial stability of your business. In extreme situations, its high -cost management could threaten the same sustainability of its activity.
3. Strengthen trust: Your employees, clients and partners will appreciate that you have taken the necessary measures to prevent risks.
How to choose a professional RC?
To ensure that all the parts in question are well covered by their professional RC, here are some points to verify when choosing their insurance:
• Analyze the terms of your source: Check if your employees, subcontractors or partners are included in coverage.
• Ask your insurer to obtain advice: Each company with unique needs is crucial to discuss its specific situation.
• Provide guarantee extensions: Some sources allow you to add options to cover special situations.
Now he knows who is covered or is not covered by his professional RC, and especially how essential it is to avoid unpleasant surprises.
If your employees are generally included, the situation of their subcontractors and commercial partners require special attention. So take the time to clarify these points with your insurer, to protect your business on time and finance optimally.
Good security supports it to find the professional RC solution adapted to your needs. Do not wait for an incident to occur: today take the necessary measures to ensure your activities.
