The principle of Operating Civil Liability (RCE) insurance

There are several types of insurance possible when exercising a professional activity. However, for many companies, business liability insurance should be at the top of the list. Want to learn more about it? Let’s see together the details of this insurance!

What is Operating Civil Liability insurance?

Imagine that you are a photographer and you take pictures at a wedding, but your camera containing all these precious photos gets stolen. Or, perhaps you are an accountant filling out important paperwork for one of your clients and you later discover that your client’s business is under tax audit. In addition, the tax inspector finds that you made significant mistakes when drafting these documents.

Fortunately, in both cases, you have an Operating Civil Liability (RCE) insurance that will protect you against such events. Without this insurance, either of these scenarios could lead to high costs for your business, likely putting it in jeopardy, or even worse, in bankruptcy.

Let’s take another example. Imagine that you are a landscaper, you go to your client to completely renovate his garden. You start the work with your employees. Unfortunately, one of these inadvertently damages a bay window of the house. With the RCE, you are covered, because it protects you in the event of material damage committed by your employees during their working hours.

Thus, such insurance makes it possible to limit the “damage” following an involuntary injury in the context of your professional activity.

What are the risks covered by the Operating Civil Liability insurance?

Something can always go wrong while performing your professional activities. During a home visit, you may break an expensive vase. In this case, the victim can hold your company liable.

The RCE (Operating Civil Liability) insurance covers in particular damage caused involuntarily to third parties during the company’s activities. For example, damage caused by property belonging to the company or for which the company is responsible (buildings, machines, vehicles, rented or entrusted objects, etc.). Or even the damage caused by the activities of the company.

Similarly, damage caused by persons acting on behalf of the company (staff, managers, partners, temporary workers, apprentices, work-study trainees, managers, volunteers, etc.) is covered.

What to pay attention to when taking out RCE insurance?

For complete and effective coverage, it is important that the nature of your activities is accurately described. This will provide a clear picture of the specific risks you incur so that you know exactly what this insurance protects you against.

Limitations of Operating Civil Liability Insurance

You should know that the Civil Liability Operation insurance does not protect you from all possible scenarios. In particular, these insurance policies do not cover intentional acts, fraud, dishonest or criminal acts, or intentional delays.

Other misconceptions also persist with this assurance. This does not cover slips and falls or if an employee is injured on the job. These incidents are covered by other insurance policies that you will generally be offered to take out at the same time as you apply for the Operating Civil Liability insurance.

Finally, keep in mind that your insurance is written on a “claims made” basis and is subject to a retroactive date. Therefore, please read your contract carefully and check that it contains all the expected clauses.

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