The auto-entrepreneur is responsible for damage caused by objects under his responsibility: vehicle, premises, equipment, construction work… Some insurances are compulsory, others are optional, although they are strongly recommended.
Compulsory insurance for the micro-entrepreneur
Compulsory micro-entrepreneur insurance for company directors is third party liability insurance if they use vehicles, whatever their mission, either for the transport of passengers or for the transport of goods. Professional civil liability insurance guarantees the micro-entrepreneur against damage caused to third parties during the exercise of his activity. This damage is of three types: bodily injury, material damage and immaterial damage. Not all auto-entrepreneurs are covered by professional liability insurance. For example, if you are a carpenter, you are obliged to take out P&C insurance. On the other hand, a web developer is not obliged to take out this insurance.
If you are a sole proprietor in construction or building, you are obliged to take out ten-year insurance. However, this insurance is not only for self-employed contractors. All building contractors are also covered by this compulsory cover for this type of trade.
Choice of insurance
Not all individual entrepreneurs are obliged to take out micro-entrepreneur professional liability insurance. The subscription to the insurance depends on the exercise of their function. It is difficult to assess the likely risks involved in the activity carried out. The simplest way is to contact an insurance company when setting up your micro-enterprise. Your insurer is in a position to assess your risks and to propose the insurance that suits you.
Before signing the proposed insurance contract, you should still be aware of the various guarantees covered by the contract. For professional civil liability, the three types of damage are material damage: if you have damaged one of your client’s objects during the performance of your work. Bodily injury: if a customer is injured on the company premises and immaterial damage: if you suffer a delay in delivery that results in a loss of profit. In all these cases, you are covered by taking out professional civil liability insurance.
The ten-year insurance is part of the professional civil liability insurance. It guarantees certain damages that may affect a construction for 10 years from the date of delivery of the work.
Where can you take out insurance?
The micro-entrepreneur can subscribe to an insurance in two possibilities. He can choose the classic way by going through the insurance company or through the Internet. By searching online, you can easily find several sites specialising in micro-entrepreneur insurance. You can make a price comparison and choose the insurance that meets your needs.
Before doing your research, as a micro-entrepreneur, you should ask questions about your business and the risks to be covered.