Micro-enterprise: the importance of insurance

Micro-enterprise: the importance of insurance

As soon as a micro-enterprise is created, the individual entrepreneur becomes responsible for his professional actions. To properly deal with the hazards and unpleasant surprises related to its activity, it is essential to take out insurance. Discover the importance of insurance for micro-enterprises.

Ten-year insurance policies provide peace of mind and protection against major losses

The ten-year insurance is a professional cover made compulsory by the Pinel law for all companies in the construction sector (carpenters, joiners, plasterer, mason, electricians, painters). It must be subscribed before the start of any work. As it concerns the guarantees offered by a ten-year auto-entrepreneur insurancewe essentially find claims likely to jeopardize the solidity of the work or to render it unfit for use. Thus, for 10 years from the date of delivery of the work, you will have peace of mind. In the event of the occurrence of ten-year defects (watertightness defects, poor workmanship of roofs or framework, major cracks, etc.), the insurer bears the repair costs.

However, note that finding a ten-year contract as a micro-enterprise can be laborious. Indeed, given the cost of claims, which are often very high, insurers are particularly cautious vis-à-vis the self-employed. So if you want to put the odds on your side and quickly find the contract that suits you perfectly, call on a competent broker. With his experience and his large network of insurers, the expert can better support you in all the steps.

Moreover, the construction sector being regulated, de facto, in addition to your ten-year insurance, you have the obligation to take out professional liability insurance. It will allow you to be compensated for claims in which your liability is incurred through inadvertence, negligence or imprudence. Also, depending on the activities and needs, the companies offer other interesting guarantees adapted to micro-enterprises:

  • operating civil liability,
  • employer’s civil liability,
  • professional multi-risk,
  • all material risk insurance.

Even if these insurances are optional, they can be very useful to micro-entrepreneurs.

Insurance is important for any business, regardless of size

Entrepreneurship generally rhymes with risks of all kinds, regardless of the sector of activity or the size of the company. Unpleasant surprises can strike at any time large firms, but also personal businesses and cause significant damage to the latter. In the case of micro-enterprises, the damage can seriously damage their finances to the point of forcing the structure to go out of business. To avoid reaching this extreme, it is strongly recommended that companies, in particular VSEs and SMEs, to take out insurance. Taking various guarantees to cover potential damage related to activities is an essential element that all companies must include in their risk management policy.

Micro-enterprises are vulnerable to lawsuits

Leak of sensitive data (following a cyberattack), products that do not comply with requirements, late delivery, etc. For various reasons, a customer, a service provider or a third party may launch legal proceedings against your micro-enterprise. Most of the time, these are tedious and time-consuming procedures that can hamper your productivity or tarnish your reputation. You can also get out of it with heavy penalties (imprisonment, closure of the company, etc.) or financial penalties if you are not well surrounded.

The best way to prevent such disasters remains the subscription of a legal guarantee with a company. Legal protection is insurance that allows you, in the event of a dispute with a third party, to benefit from special assistance. You will thus be able to obtain from a legal specialist, legal advice relevant to your situation or strategies aimed at finding amicable solutions.

Premiums are affordable and suitable for micro-enterprises

Given that auto-entrepreneurs have to face the same requirements as other investors, insurers offer coverage with premiums adapted to their status. In general, the price of micro-entrepreneur insurance varies mainly according to of the turnover achieved by the company. If you are looking for the most affordable premiums on the market, nothing beats the support of an experienced broker.

In addition, your sector of activity can also influence the price of your insurance contract. For example, for ten-year insurance, a mason or a carpenter must pay more than an electrician or a plasterer. Finally, the guarantees to which you subscribe will be decisive in the cost of your contract: simple professional civil liability will be less expensive than multi-risk cover.