Self-employed, professionals and SMEs: how to choose the right business multi-risk insurance?

Why take out business multi-risk insurance?

Whether water damage, fire, theft or a dispute with a customer, there are many pitfalls out there that can jeopardise the future of your business. 

Multi-risk business insurance allows you to:

• Protect your premises, equipment and goods;
• Ensure the continuity of your business in the event of a claim;
• Cover your professional civil liability.

The essential coverage your professional insurance should offer

Protecting your property

If all the computers in your office are stolen, a short-circuit causes a fire on your premises, or water damage damages not only your parquet floor but also your next-door neighbour’s ceiling... this insurance covers your premises, as well as their contents (equipment, furniture, supplies, stock, etc.) and your inventory against material damage in the event of fire, water damage, theft, vandalism, glass breakage, climatic events, etc.

Business interruption

This cover compensates for the reduction in gross margin and additional costs incurred following a loss (such as equipment rental, communication costs, etc.), enabling you to stay in business during the work period and get back up and running as quickly as possible. 

The compensation paid will enable you to meet your fixed costs (depreciation, taxes, rents, staff remuneration, interest on loans, etc.). 

Your professional liability

This covers any damage you may cause to third parties in the course of your professional activity. It is often compulsory, and forms the basis of all professional insurance.

Your legal protection

It covers defence costs in the event of a dispute with a customer, supplier or competitor.

How do you choose the right insurance for your business?

As a professional, your time is precious, but choosing the right business insurance is the best way to ensure you're well covered in the event of a problem. 

Here are a few key points to help you make the right choice: 

Analyse your needs precisely

Every business is unique, and faces specific risks depending on the nature of its activity, its size, its location, etc. The first step is therefore to identify your needs in terms of: 

• The size of your premises: do you have several offices, warehouses or other premises?
• The nature and value of your assets: furniture, equipment, stock, etc.;
• The risks associated with your business: risk of fire, theft, etc.

To find out more, don't hesitate to contact your insurance agent who is best placed to advise you on the best way forward. 

Compare several quotes

Don't hesitate to ask several insurers to compare their offers. In addition to the amount of the premium, take a close look at:

• The cover offered;
• Compensation limits and deductibles;
• Exclusions: certain risks may not be covered, leaving you vulnerable in the event of a claim.

Factor in the growth of your company

Your business is set to evolve: new premises, new recruits, diversification of activities. Make sure your policy can adapt to these changes.

Regularly check with your advisor to make sure that your coverage keeps pace with your company's evolution. 

The importance of suitable insurance for small businesses

Small businesses are often more vulnerable to risks, as they have fewer financial resources to deal with them. An uninsured loss can quickly jeopardise the survival of your business.

Contrary to popular belief, VSEs and SMEs are no less exposed to risk than larger companies. On the contrary, they may be more vulnerable to certain events, such as:

• A dispute with a major customer;
• Material damage to premises or equipment;
• The inability to meet your expenses in the event of an incident affecting your business.

While well-adapted insurance certainly represents a cost, it is above all an investment to protect your business and give you the peace of mind you need to concentrate on what's important to you: its development.

Professional multi-risk insurance isn’t just an administrative formality, but a genuine risk management tool for your business. By choosing the right coverage for your business, you'll have the means to deal with unforeseen events and ensure the long-term future of your company.