"Are you properly insured?" The question comes up at every bank appointment, every lease signing, every call for tenders. And the answer is often vague, because the world of professional insurance is a maze where few entrepreneurs find their way.
Insurance that is truly mandatory
Contrary to what many believe, there is no general insurance obligation for all businesses. The obligation depends on your sector of activity.
Ten-year warranty (Construction)
Who: all building professionals (structural work, finishing work, project management).
What: covers damage that compromises the strength of the structure or renders it unfit for its intended purpose, for 10 years after work completion.
Cost: 2,000 to 8,000 euros/year depending on activity and turnover. It's expensive, but the absence of ten-year warranty is a criminal offense (fine of 75,000 euros and 6 months in prison).
Professional Liability Insurance for regulated professions
Who: medical, legal, accounting professions, real estate agents, architects, insurance brokers.
What: covers damage caused to a third party in the course of professional activity.
Cost: 300 to 3,000 euros/year depending on the profession and turnover.
Professional vehicle insurance
Who: any business owning vehicles used for professional purposes.
What: automotive liability (legal minimum) + options (comprehensive coverage, transported goods).
Insurance strongly recommended (even if not mandatory)
Voluntary Professional Liability Insurance
Even if it's not mandatory in your sector, professional liability insurance is recommended whenever your activity could cause harm to a client or third party. A consultant whose advice causes financial loss, a web developer whose bug paralyzes the client's activity, a caterer whose service causes food poisoning.
Moreover, many professional clients require professional liability insurance certification before signing a contract. Without it, you lose deals.
Multi-risk professional insurance
It's the "package" that combines:
- Property insurance (fire, water damage, theft)
- Professional equipment insurance
- Operating liability (damage in your premises)
- Legal protection
Typical cost: 300 to 1,500 euros/year for a micro-business without commercial space. 800 to 3,000 euros with a premises.
Business interruption insurance
If a claim (fire, flood, burglary) halts your activity, this coverage compensates for lost turnover during the reconstruction period. Typically, it covers 6 to 12 months of fixed costs.
For a micro-business whose turnover depends on a specific location or equipment, it's a vital safety net.
Cyber insurance
In 2026, cyberattacks heavily impact micro-businesses (43% of attacks target businesses with fewer than 50 employees according to ANSSI). Cyber insurance covers: remediation costs, business interruption loss from computer outage, GDPR notification fees, legal fees.
Cost: 300 to 1,200 euros/year. Should be seriously considered if your activity depends on IT.
How to reduce insurance costs
- Compare: use an independent broker who will put 5 to 10 companies in competition
- Increase deductibles: a higher deductible reduces the premium. If you can absorb 500 euros in damages, raise the deductible from 150 to 500 euros
- Bundle contracts: one insurer for everything gives you bargaining power
- Pay annually: monthly installments cost 5 to 10% more
- Declare your turnover accurately: overvaluation unnecessarily inflates the premium
Insurance isn't sexy, but under-insurance can kill your business. Take 2 hours to review things with a broker — it's time well invested.