Company liability insurance
The company is sometimes responsible for bodily injury, material or immaterial damage caused to third parties (customers, visitors …) during its activity. Liability insurance allows the company to cover the financial consequences of such damage.
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| Company liability insurance |
What does a company’s civil liability cover?
A business has an obligation to repair any damage caused to others by people or property for which it is liable. This is his civil liability.
This liability can be engaged in many circumstances:
it can have various origins (fault committed, non-compliance or non-performance of the contract, ..), during the activity of the company, as after the delivery of the products it has manufactured and for which it is responsible;
it can be due to the company itself (its activity, its premises, for example) as well as its manager or its employees;
it concerns damages affecting all types of third parties (customer, supplier, visitor, etc.);
it can be contractual (non-performance or poor performance of its contractual obligations) or tort or quasi-tort (damage caused outside the contractual framework).
Faced with these risky situations, different types of civil liability insurance can be taken out by the company to enable it to assume responsibility for damage and thus to sustain its activity.
A distinction is made between operating civil liability insurance, which covers liabilities incurred during operation and during the company’s ancillary activities, and product or after-work civil liability insurance, which covers damage caused after delivery. , by the products manufactured or, after receipt, by the services provided by the company.
Some guarantees fall under property insurance contracts (occupancy of premises), others fall under general liability insurance (operation, products). Finally, certain guarantees are covered by specific contracts (civil liability of corporate officers).
Company civil liability insurance
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The risks Fire, explosion, water damage The company, as well as any person participating in its operation, may be held liable in the event of damage caused by fire, explosion or water damage. Officers Company managers (company directors) are professionals whose personal liability can frequently be sought because of faults committed (errors of law or fact, omissions, negligence, etc.) by partners, employees, third parties. |
Guarantees Civil liability guarantee “occupancy of premises” For fire damage or water damage caused to neighbors and third parties. For damage caused to the owner (when the company has the quality of tenant) or to the tenant (when the company has the quality of owner). Liability guarantee for corporate officers It is usually offered in a separate contract. It covers the costs of defending executives in civil, criminal or administrative proceedings as well as the amount of civil convictions they may be subject to. |
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During operation Damage to third parties The company is sometimes responsible for bodily, material or immaterial damage caused to third parties (customers, visitors, etc.) during the activity. |
Operating liability guarantee It is included in the comprehensive insurance or offered by civil liability contract. Its purpose is to guarantee the financial consequences of damage caused to third parties in the context of the declared activity. Depending on the specificities of the company, optional guarantees are offered. |
Materials and goods entrusted
Goods are entrusted to it within the company or when it performs work for third parties, to use, work or transport them.
Operational liability guarantee
Guarantee of entrusted goods
This guarantee applies to the pecuniary consequences of civil liability incumbent on the company due to damage to property entrusted to it within the framework of the activities defined in the contract.
Pollution
The company may be the source of damage to third parties resulting from damage to the environment of accidental and sudden origin (breakage of parts, explosion, incorrect operation, etc.) or of gradual origin (corrosion, alteration of tanks or pipes, etc.).
The company can also be the cause of damage to biodiversity (water, soil, species and natural habitats protected) and have its so-called environmental responsibility recognized.
Liability guarantee for environmental damage / guarantee for environmental damage
The general liability insurance contract is generally issued a guarantee against accidental damage to the environment. It applies t
o the pecuniary consequences of civil liability incumbent on the company due to consequential bodily, material and immaterial damage suffered by third parties when such damage results from accidental environmental damage.
Optional extension of guarantee or specific contract, in particular to cover damage resulting from environmental damage of gradual origin and damage to biodiversity (water, soil, species and protected natural habitats). Damage to biodiversity can be covered by an environmental damage guarantee
Bodily injury suffered by employees
These damages fall under, with some exceptions, the legislation on accidents at work, which in principle excludes any action for civil liability against the employer.
However, the liability of the insured may be sought in his capacity as employer in the event of inexcusable fault on the part of the insured or a substitute in management.
Employer’s inexcusable fault guarantee
In general, insurance contracts covering corporate civil liability include an inexcusable fault cover with a specific cover limit.
The inexcusable fault cover covers the civil financial consequences of the inexcusable fault and the defense costs.
Consequential material and immaterial damage suffered by the employees
The insured may be held liable for damage caused to the property of his employees as well as that of trainees, hiring candidates and volunteers in the performance of their duties (personal effects, personal vehicle parked on a site). made available to them).
Operating liability guarantee
The contract covers not only material damage to the goods but also non-material damage resulting from such damage.
Damage caused by company employees
The company can be held liable for damages caused by its employees in the performance of their duties (including interns, applicants for employment and volunteers when they are employees).
Operating liability guarantee
The operating civil liability guarantee applies in the event that the company is recognized as civilly liable in its capacity as principal.The personal liability of the agents is excluded.
After delivery
Damage to third parties
The company is responsible for damage caused to others by its products or services
Product liability guarantee (or after delivery, or after receipt)
Its purpose is to guarantee the financial consequences of bodily injury, material and immaterial damage caused to others (third parties and customers) by the products and services of the company, from their release or receipt.
Damage to the products themselves or the recovery of defects are not guaranteed.
Withdrawal fees
Guaranteed withdrawal fees:
The costs of withdrawing a product presenting a danger to the health and safety of consumers may be covered by an additional guarantee.
Removal and refitting costs
Guarantee Removal costs – refit
This additional guarantee can be taken out by the company. Its purpose is to compensate the injured third party for the costs incurred to file the defective product / hidden defect / error … delivered by the company and to re-install a product free from defects.
Subcontracting
The company works as a subcontractor.
Product liability guarantee (or after delivery, or after receipt)
When the company subcontracts part of its activity, its liability due to its subcontractors can be guaranteed. However, the personal liability of subcontractors is excluded.
