Legal and Tax Protection Insurance

Quel contrat d’assurance choisir pour vos véhicules professionnels ?

Professional legal protection insurance allows the entrepreneur to cover all legal risks related to the exercise of his professional activity.

Less known than liability insurance, legal protection insurance is however very important to protect the company in the management of disputes.

Risks covered by professional legal protection insurance

Professional legal protection insurance covers the entrepreneur at several levels. It particularly concerns disputes arising from:

  • with suppliers, with customers, and with all of the company's other partners,
  • as part of an administrative audit (tax audit, Urssaf audit),
  • or during a dispute with an employee and seizure of the Prud’hommes.

Here are some application examples:

  • in the event of a dispute within the framework of a contractual relationship (dispute with a supplier, dispute with a service provider, dispute with a client), the insurance can cover the fees of the lawyer involved.
  • as part of a tax audit, insurance can cover the fees of a chartered accountant or a lawyer assigned to assist the business manager.
  • in the event of non-payment, insurance can assist the business manager in the recovery of his debts.
  • in the event of a seizure of labour by an employee, the insurance covers the fees of the lawyer who defends the interests of the company.

Services offered in professional legal protection

By taking out professional legal protection insurance, the business manager can benefit from support at several levels in the event of a dispute.
Here are the main areas covered by this insurance:
  • information and legal prevention, which allow the business manager to be advised by an expert in the event of a problem to protect the interests of the business,
  • amicable conflict management, through which an expert tries to find an amicable solution in the interests of the company in the event of a conflict,
  • defence of defence costs, which enables the company to obtain payment of the fees and expenses of the lawyer selected to defend the interests of the company in the context of a legal dispute.

However, if the company loses a lawsuit and is convicted of a conviction, it is important to note that the insurance will not cover the indemnities and penalties payable.

To best secure the company's legal situation against litigation with third parties (suppliers, customers, employees, etc.), the company manager must take out professional legal insurance adapted to his needs.

The scope of professional legal protection, the guarantees and the amount of coverage are set out in the insurance contract.

Quel contrat d’assurance choisir pour vos véhicules professionnels ?
Advantages and disadvantages of professional legal protection insurance

For the business owner, the interest of professional legal protection insurance lies in the delegation of conflict management to professionals.

Thus, in the event of a dispute, an expert will take charge of the problem instead of the company manager, which will save time.

In addition, the insurance will cover all or part of the costs incurred.

In return, the purchase of such insurance has a cost to the company. Then you have to take into account the following disadvantages:

  • the lawyer is not systematically chosen freely, it is necessary to check what is provided for in the contract,
  • the amount of compensation provided for in the contract is capped, which does not make it possible to be systematically reimbursed for all costs in full,
  • the contract does not cover all disputes, there are warranty exclusions that you should be aware of.
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