Operating liability insurance covers damage to third parties that may occur during the performance of the day-to-day business activity. Even if the terminologies are similar, operating liability insurance should not be confused with professional liability insurance, which does not cover the same risks.
This file explains everything you need to know about operating civil liability (RC) insurance :
The risks covered by operating liability insurance
Is RC operating insurance compulsory?
A few examples of damage covered for operating RC
Operating liability and professional liability insurance: the difference
The risks covered by operating liability insurance
Operating civil liability insurance covers the company in the event of bodily injury, material or immaterial , occurring within the company or outside, and caused:
to third parties (such as a customer or supplier) during your declared activity,
to employees following a so-called “inexcusable” fault on the part of the employer,
to the goods which are under the responsibility of the company,
property belonging to your employees (personal effects, etc.),
or by company employees in the course of their duties.
Is RC operating insurance compulsory?
Operating liability insurance is not compulsory for companies. However, it is more or less recommended depending on the activity carried out by the company.
All companies have an obligation to repair all damages they cause to third parties in the course of their activity. In the absence of cover in relation to this risk, the company will itself bear the cost relating to the repair of the damage caused.
If the company carries out an activity which involves risks of damage and it has the necessary financial means, it is advisable to take out this guarantee.
A few examples of damage covered for operating RC
As we have previously specified, operating liability covers damage caused to third parties in the context of the daily activity of the company. Here are some examples :
the fall of a third party on company premises,
damage to an employee’s vehicle in the company car park,
a commodity, product or object that falls on a customer,
the damage, by an employee of the company, of equipment made available by a customer,damage caused to an employee following an inexcusable fault on the part of the employer,
Operating liability and professional liability insurance: the difference
Even if the terminologies of these two insurances are similar and they both come under civil liability, they do not cover the same type of risk:
the RC Pro insurance covers the defense costs as well as the damages resulting from the questioning of the company in the execution of its services. Here, it is damage occurring after the performance of the services (result of an error or an oversight for example);
operating liability insurance covers damage occurring in the context of the company’s daily activities. This therefore concerns damage occurring during the performance of the services.
Finally, operating RC insurance is not compulsory for companies, whereas professional RC is for a certain number of professions (in particular regulated activities).
