Professionalism and meticulous attention to every detail, always being careful to review every item before delivery, and this commitment usually brings impeccable results. However, even a small error can have unforeseen effects, both on your customers and on the stability and success of your business.
If through your activity or your company’s activity you can accidentally cause material damage or bodily injury that entails compensation and expensive legal actions, liability insurance offers you support to manage difficult situations in which you have to pay compensation to individuals or companies for such risks, without affecting the smooth running of your business.
General liability insurance covers the expenses that the company will end up paying to the injured person, in extreme situations when you accidentally and unintentionally cause material damage and bodily injury or even death, in the course of your daily activity. Whether it is a beauty salon, a boarding house, an advertising agency, a bakery or a car service, unforeseen situations can arise at any time and seriously affect the future of the company, from reputation to financial damage.
Depending on the specifics of the activity and the company’s needs, you can choose Civil Liability Insurance:
- legal
- of the tenant against the owner
- of the owner towards the tenant
- of the company towards its own employees
- of the manufacturer
- of the service provider
- tourist and hotel units and public catering units
- of teaching and pedagogical staff
- of the security and surveillance companies towards the beneficiaries
- of car services towards the beneficiaries
- of hygiene and beauty salons
Groupama grants compensation and covers the costs resulting from an unforeseen incident, within the limits of the amounts provided in the contract, for the amounts that the insured is obliged to pay, based on the law, to the injured person, as well as for the court costs incurred by the insured or the injured third party.
Here are some situations in which you need legal liability insurance:
- During a business meeting with a supplier at your company’s premises, the supplier is injured when a metal panel detaches from a wall. The provider claims the hospitalization expenses incurred as a result of the hospitalization.
- As a result of insufficient safety measures taken by your company, a major incident occurs during the production process in which an employee suffers bodily injury. The employee claims the hospitalization expenses incurred as a result of the admission.
- One of the products distributed by your company causes several consumers severe abdominal discomfort that subsequently requires hospitalization. Consumers claim hospitalization expenses incurred as a result of hospitalization.
- A security and surveillance company was hired to ensure the security of an electronics store during the night. During the night shift, a security guard did not properly observe the surveillance camera monitoring system and left an area uncovered, and a group of thieves broke into the stores and stole products. The customer requests the recovery of the damage.
- A customer takes the car to a car service for an oil change and a general check. While doing the work, the mechanic accidentally scratches the car door. The day the customer picks up his car, he notices that the door is scratched and asks the service to repair it.
- A client goes to a beauty salon for a microdermabrasion facial, a skin exfoliation treatment using a special device. The technician performing the treatment applies too much pressure to the client’s face during the exfoliation. Following the treatment, the client develops severe skin irritations that require dermatological treatment and a recovery period. The customer claims negligence by requesting coverage of expenses for medical treatment.
In any type of business, there is always the possibility that someone will make an error, through omission or even professional negligence, that will cause financial harm to customers or co-workers. Professional Liability Insurance provides financial support for these moments.
There are various types of professional liability insurance designed to cover the specific needs of each industry. The law requires professions such as lawyers, notaries, doctors, pharmacists, architects, insurance brokers, etc., to take out professional liability insurance in order to have the right to practice in the chosen field.
At Groupama, you can take out Professional Liability Insurance for:
- architects and engineers in the field of construction
- accounting, financial audit and tax consulting activities
- legal activities
- activities of insurance agents and brokers
- activities of insolvency practitioners
- activities of evaluators and technical experts
- service and consulting activities in information and communication technology
- regarding medical practice (malpractice insurance)
This type of insurance fully covers the amounts that the insured is obliged to pay, according to the law, to the damaged natural or legal person, resulting from culpable acts (error or omission, unintentional violation of professional duties or negligence) committed by the insured in the provision of a professional service, respectively the amounts established on the basis of a court/arbitration decision or amicable settlements; defense spending; expenses for the limitation of damages services (fees and/or costs necessary for the services of an external lawyer or consultant, requested for the purpose of minimizing the risk) or expenses for restoring documents.
Here are some situations in which you need professional liability insurance:
- As a lawyer, you provide legal advice to a client in relation to a real estate project. Later, the client accuses you of negligence in structuring the transaction, which led to the project being delayed, and your client being exposed to third-party claims.
- If you are a construction contractor, it may happen that due to a design error, the electrical installation work does not fit within the parameters and you bear the full cost of fixing the problem. If you provide legal services and fail to file a court case on time, you may end up paying compensation to the client who lost the case.
- Following a dental intervention, the patient suffers from jaw injuries caused by the dentist’s carelessness. The patient claims the costs of restoring the maxillary injuries suffered as a result of subsequent interventions.
Challenges and difficult moments are part of every entrepreneur’s journey – you can’t avoid them or predict them, but you can insure them with the right policy. We hope this material has helped you discover it and better understand what it can do for you.
Take the step towards an insured future and ask for an insurance quote.
For additional information, you can consult the virtual assistant Amelie (24/7) on groupama.ro, you can write to relatii.clienti@groupama.ro, you can call AloGroupama 0374.110.110 (Monday – Friday, between 8:00 – 18:00) or contact the Groupama network of sellers and partners.