Company leader’s risks: Obligations and requirements
Comprehensive Professional Insurance
- Full coverage for business assets.
- The walls of the business premises
- The content of the buildings such as furniture, equipment and goods which may be damaged during an incident.
What are the risks?
- Water damage
- Acts of God
- Theft, attempted theft and vandalism
- Broken glass
- Electrical damage
- All IT and office automation risks
- Operating loss
- Equipment breakdown.
What should you insure?
- Electrical and electronic devices, machinery and equipment,
- Computer hardware,
- Production equipment,
- Construction equipment.
Business interruption insurance:
- Inclusive or added to property damage
- Serves to compensate financial loss further to damage suffered by your property
The damage and its consequences:
- Decline in turnover
- Continued financial burden (salary expenses, rent, social security contributions and tax payments)
- The business interruption insurance offsets the imbalance with financial compensation
- Coverage of
- Overheads: staff salaries, rent, social security contributions, invoices, tax payments, etc.
- Additional expenses: rental of replacement equipment, rental of business premises, administrative procedures, etc.
- Light duty vehicle / utility vehicle – heavy duty machinery – heavy goods vehicles
- Own use vehicles
- Corporate fleets are different and require ongoing management.
- Cover the flows = major priority for companies.
- Exposure of transported goods to many risks: theft, breakage, fire, water, strike, war, etc.
- Retain control of the risks and their associated costs. A company which uses the services of a carrier must also insure its own.
- The carrier may be exempted of liability, due to the cations of a third party, force majeure, etc.
- The carrier has contractual limitations of liability which are almost always less than the actual value of the carried goods
- The carrier’s statute of limitations is short (often 1 year), thereby limiting the availability of remedies
- Many international contracts of sale stipulate that the seller or the buyer must cover the transport and goods insurance costs
- The financial cost of the “ad valorem” insurance invoiced by the forwarding agent is higher than the cost of a cargo insurance
Non-owned auto insurance
- Covers the employer’s liability when employees use their personal vehicles for professional purposes
- This is often included in the Comprehensive professional insurance policy
It covers: The financial consequencesof a fault committed by the members of the company when they perform a service reported on the policy.
- It serves to cover the company for:
- material damage caused to a third party during the service
- intangible damage caused to a third party during the service
- bodily injury caused to a third party during the service
- damage caused by movable or immovable property during the service
- damage caused by fire during the service
- damage causedbywater damage during the service
- damage caused by an explosion during the service
- Covers against the financial consequences arising from the professional activity in the event of bodily injury, material damage or intangible damage caused to others
- In the event of fault negligence or error
- Committed by the company leader or the employees
- The Spinetta Act of 4 January 1978 lays down the obligation for professionals in the building sector to take out insurance. These professionals include craftsmen, architects, engineering firms, consulting engineers, quantity surveyors, etc.
- Covers the damage related to performance of a service
- For ten years
Liability of senior managers and corporate officers
What can they be blamed for?
- Management error
- Failure to comply with social security, tax, competition and health laws
- Failure to abide by regulations
- Breach of the articles of association (exceedance of investment authority, etc.)
- Company leader
- General manager
- Deputy general manager
- Executive Board Chairman and members
- Supervisory Board Chairman and members
- De facto manager
- Coverage of procedural costs in the event of litigation
- For natural persons or legal entities
- Coverage of the legal entity for criminal proceedings
- Coverage of natural persons for criminal proceedings and disciplinary actions
- Coverage for social security-related issues
- Coverage for labour-related issues
- Coverage for trade-related issues
- Coverage for asset-related issues
- Coverage for administrative issues
Employees’ tasks and assignments:
- Need for assistance during an assignment abroad
- Victim of an accident: emergency repatriation and organisation of the travel for a replacement
- Hospitalisation for more than 6 days of an employee’s family member?
- Coverage of health expenses (Doctor’s visits / hospitalisation)?
- Cancellation or postponement of a departure
- Theftof the employee’s identity documents
- Obligation to provide group health insurance (01/01/2014)
… For your company
- Indirect payment system, employee motivation and retention tool
- Exemption from social security contributions
- Contributions deducted from taxable income
… For your employees
- Affordable health coverage
- Free and efficient health services: assistance, home help, dentist’s and optician’s estimate
- Contributions deducted from their income tax
- Employer’s obligations
- The establishment of a welfare scheme is mandatory for executives (Art. 7 of the French Collective Bargaining Agreement for Executives of 14 March 1947).
- Overcome the financial impacts of life accidents.
- Cope with sick leave, invalidity, work-related accident, death
Supplementary pension (Art 82; 83; 39)
- An individual lifetime retirement savings account for each employee
- Capital paid out quarterlyupon retirement
- Deferred annuity.Capital is received five years after the employee goes on retirement. It continues to grow.
- In the event of death, the capital is not lost.
- Payment to beneficiaries
- Since 1985, provisions for retirement benefits are not deductible
- Anticipation and planning of expenses
- Revaluation of welfare benefit liabilities
- Tax savings achieved
- Smoothing of obligations
- Recovery on the benefits contract upon retirement
Company savings plan
- Enhanced company image / Voluntary savings
- Savings available after 5 years
- Before 5 years in specific cases
- Voluntary payments
- Non taxation of employer’s optional contribution, 8% of the annual social security ceiling -PASS (€ 37,032) maximum per year and per beneficiary
- No taxation for the employee
Key Person Coverage
- Key Person coverage
- Cope with the replacement of the key person
- Coverage in the event of death or disability of the key person
- Underwriter =company / insured = natural person
- Payment of the compensation to the company
Senior manager’s unemployment coverage
- No unemployment benefits for most senior managers
- Protection in the event the senior manager becomes unemployed
- Employee or non-salaried worker status
- Conditions of enrolment of the company Must have been in business for at least 2 accounting periods,
Not be a listed company.