The principle of insurance is based on the concept of risk, that is to say exposure to a potential danger, inherent in a situation or an activity and whose financial consequences could not be faced, whether they are related to property or people.
From danger to accident
The danger is the prelude to the risk which is itself the prelude to the accident. Thus the danger having been identified, the risk becomes perfectly describable , it is likely to occur but we do not know if it will happen and when it will happen.
Insurance is a contract : in return for the payment of a contribution, also called a premium, the insurer guarantees specific services to an individual, an association or a company in the event of a risk clearly identified in the contract.
The concept of risk is a key concept in insurance, it is a random event feared by an insured for its financial consequences. The hazard is based on three criteria:
the future : you cannot insure a car accident that has already occurred;
the uncertain : we cannot insure a certain risk which will materialize on a known date;
involuntary : damage cannot be insured that the insured causes or is caused voluntarily.
Different types of insurance
Damage insurance
Damage insurance includes both liability insurance (family liability, driver liability, professional liability, etc.) and property insurance (insurance of movable and immovable property, damage to the vehicle, etc.).
The traditional vocation of insurance is to allow the replacement of destroyed or stolen goods . In addition, today liability insurance in the field of domestic life, professional activity, traffic and leisure has developed considerably. In this case, we insure ourselves against damage and possible harm caused unintentionally to third parties.
The purpose of property and liability insurance is to protect the assets of the insured. They are, for some grouped in "multi-risk" contracts (multi-risk residential, multi-risk business ...).
The most common property insurance is fire insurance, theft insurance, water damage or glass breakage, but other types of events are automatically integrated (natural disasters, attacks, etc.) or offered as an option.
Personal insurance
Personal insurance covers the risks inherent in human life and offers a complete set of solutions adapted to each situation. Some contracts provide benefits in the event of physical harm: death, invalidity (insurance in the event of death), others allow savings to be set up and paid out in the form of an annuity or capital if the insured person is alive at the end of the contract (life insurance).
It all depends on your activity. Insurance may be an obligation: - imposed by law: this is the case, for example, for the decennial liability of building companies, for vehicles, for premises, ... - imposed by the texts which govern activity: this is the case, for example, for travel agencies, real estate agents, etc.
It is therefore important to find out about the insurance obligations linked to your activity . To do this: - get the AFE Projectors file dedicated to your activity, if there is one, - consult the Activities and regulated professions section of this site.
Warning ! Even if your activity does not require you to take out insurance, do not neglect this step and think about the risks you take! You can cause an accident in a customer or in your local ... and even in front of this one by opening the door of your car for example! No situation is completely risk-free. You must assess: - the risks that your company may take on (broken windows, furniture, signs, etc.) taking into account its financial capacity, - those that it is preferable, even essential, to transfer to the insurer (fire, explosion ...). The appearance of insurance is arecent phenomenon.In France, it only dates from the end of the old regime, with the founding of the General Insurance Company and big adventures in 1686, even if from the XIVthcentury Italian merchants had found a way to protect their ships against losses suffered during a shipwreck or following the misdeeds of pirates.They created associations in order to constitute funds likely to compensate them (Amalfi code).
Insurance development islinked to economic and social transformations: the transition from an agricultural economy to a diversified economy has multiplied the causes of damage (industry, trade), and the concentration of populations in cities with the appearance of new dwellings and new lifestyles has generated new plagues
The insurance is a way to manage risk. When you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a certain amount of money, called a "premium." The insurance company invests this money securely in order to make it grow and redistributes it when there are claims.
Insurance helps you:
become a homeowner because mortgage lenders need to know that your home is protected . The insurance pays the repair or replacement costs in the event of damage covered by your policy. It provides protection against theft, various damages (eg in the event of fire or water damage) and the owner's financial liability in the event that a person accidentally injures himself on the insured premises.
drive a car because - without insurance - few people are able to pay for repairs themselves, health and legal costs resulting from a collision and bodily injury. Auto insurance is also a legal requirement.
maintain your current standard of living in the event of disability or serious illness . Insurance covers daily costs and major expenses, such as a mortgage, so you can focus on your recovery.
pay for health care costs related to prescription drugs , dental care, vision care and other health care.
provide for your family in the event of death . Life insurance offers short and long-term guarantee options to protect your family home, mortgage, lifestyle and the cost of your child's post-secondary education.
operate a small business or family farm by managing property risks. You can get protection for the owner, business and staff, and offer group insurance and pension plans to your employees.
take a vacation without having to worry about a flight cancellation or emergency medical expenses abroad.
Take the time to review your policies and contact one of our representatives to clarify your questions or ask for advice. A little practical knowledge can make all the difference when it comes to choosing the right protection for you and your family.
They can be classified into 3 categories: 1) The insurance of the goods of your company The goods constitute an important part of the assets of your company: premises, materials, stocks, fixtures, production tools, computer systems, vehicles .. It is strongly recommended to protect all of these goods against the risk of fire, explosion, storm, water damage, theft ... More information on the insurance of your goods 2) Insurance of your activity (products, services) You have employees, you receive customers, you rent premises, equipment or machines, you work for customers ... There are many situations in which your responsibility could be sought in the event of damage caused in the course of your activity. It is therefore strongly advised, even if you are not subject to it, to take out a civil liability insurance for exploitation, and / or occupation of the premises, and / or loss of exploitation, and / or damage to the environment, etc. . More information on the insurance of your activity To this are added specific risks for certain activities which can be covered by the following insurances: - professional liability of the liberal professions - the ten-year manufacturer's guarantee - goods under controlled temperature - goods and equipment transported - etc. Get in touch with professional organizations in your sector of activity, which can, if necessary, direct you to specialized insurance companies. 3) Personal insurance: you, your spouse, your employees (sickness, provident, retirement, unemployment ...) Your company is subject to a conventional and legal framework which places certain obligations in terms of social protection at your expense ( retirement, providence) with regard to your employees. Note that since January 1, 2016, all employees of companies in the private sector must have complementary health insurance (mutual) with a minimum cover of guarantees called the "care basket". The company must participate in the financing of these guarantees at least up to 50%. This obligation only concerns employees, the company remaining free to insure or not the spouses and children of employees. It is not possible to exclude employees but cases of exemption from membership are provided for by the regulations. The establishment of a group insurance contract allows the company to benefit from tax and social advantages. Learn more about this obligation Apart from this mutual benefit obligation for your employees, it is important to ensure the protection of everyone, including during business trips, and of course not to forget: - or your own protection needs as a business manager , - or those of your spouse. More information on personal insurance
Who to contact to make sure? Let the competition play! Compare the offers that will be made to you and above all have yourself fully explained, in detail, the coverage offered to you. You can contact: An insurance company without an intermediary, ie a company which provides insurance services directly, possibly via the internet. These are: - either an insurance company (capital company governed by the Insurance Code), - or a mutual insurance company (group governed by the Mutual Insurance Code for health and welfare and by the Insurance Code for other risks). Some of them are specialized in a type of insurance (e.g. provident insurance) or in an activity (e.g. architecture). An intermediary, that is to say: - a general insurance agent, who represents one or more insurance companies in a given geographic area, - a broker who will look for an insurer for you. He has a role of adviser and negotiator to build a cover adapted to your situation, - an insurance agent. To find out more about intermediaries: read the practical sheet on Can't find an insurer? This situation can occur if you embark on a new or particularly risky activity, or if you do not have enough experience in your sector of activity. In such a case, approach your professional organizations , which will most certainly be able to guide you. If it is a legal insurance obligation (ten-year insurance for example), you can contact the Central Tariff Office (BTC) . It is a body set up by the public authorities to enable an insured person (subject by law to an insurance obligation and who cannot find an insurer who accepts to guarantee it) to meet his obligation.
And microinsurance ... What is it? These are insurance contracts adapted to the needs of very small businesses and offered at reduced rates: - who are in the start-up phase of their activity, - who do not need to build up a large stock, - who are followed by a network for assistance in setting up a business and who have funding. The entrepreneur chooses his guarantees himself: home multi-risk, professional multi-risk, professional civil liability, provident insurance, complementary health, decennial responsibility of building contractors.