In terms of insurance, immaterial damage is often overlooked, although it can have significant financial consequences. Unlike material or bodily damage, it concerns financial losses suffered following a disaster. Find out in this article everything you need to know about immaterial damage in insurance, how it is covered and how to protect yourself properly.
1. What is Immaterial Damage in Insurance?
Non-material damage is a financial loss suffered by a person or business as a result of a disaster, without direct physical or material harm. It may result from pre-existing physical or material damage.
Examples of non-material damage:
- Loss of business for a company following a fire in its premises.
- Loss of income for a self-employed person due to prolonged immobilization of their vehicle.
- Loss of data or strategic information following a computer disaster.
- Moral damage following an accident caused by a third party.
2. The Different Types of Immaterial Damages
a. Consequential Immaterial Damages
These damages arise directly from bodily injury or material damage. For example:
- A business closed for several weeks after water damage (loss of turnover).
- Cancellation of a contract following a disaster occurring in a company.
b. Non-consequential Immaterial Damages
They occur without any material or physical damage preceding them. Examples:
- A company suffering financial loss due to a service provider's failure to provide advice.
- A loss of opportunity due to a delivery delay impacting a business opportunity.
These damages are more difficult to prove and their compensation depends on the responsibility of the third party involved.
3. How does Compensation for Non-Material Damages work?
Compensation depends on the type of insurance taken out and the guarantees included in the contract.
- Professional liability insurance (RC Pro) : Covers non-material damage caused to third parties by an error, delay or professional fault.
- Business interruption insurance : Compensates a company in the event of a temporary cessation of its activity following a disaster.
- Defense and recourse guarantee : Allows you to obtain compensation for non-material damage suffered following a dispute.
Insurers assess the financial impact of the damage before making compensation, which depends on the contractual clauses and the guarantee ceiling.
4. Why Take Out Insurance for Non-Material Damage?
a. Protection against Financial Risks
Immaterial damage can lead to heavy financial losses, impacting the profitability of a company or the financial stability of an individual.
b. Securing Professional Activities
Professionals exposed to litigation risks (consultants, craftsmen, traders, liberal professions) must protect themselves with professional civil liability insurance .
c. Ensure Business Continuity
In the event of a major incident (fire, flood, cyberattack), business interruption insurance allows you to maintain income despite the temporary cessation of activity.
5. Why Choose KT Assur&Bank to Protect Yourself Against Immaterial Damage?
At KT Assur&Bank , we offer insurance tailored to individuals and businesses to cover all types of non-material damage:
✅ Professional liability insurance : Protection against financial losses caused to third parties.
✅ Loss of business guarantee : Maintain your income in the event of business interruption.
✅ Tailor-made solutions : Contracts adapted to the needs of professionals and freelancers.
✅ Personalized support : Our advisors guide you in managing your claims and your compensation procedures.
Conclusion
Non-material damage can have significant consequences, particularly for businesses and the self-employed. Appropriate insurance allows you to anticipate these risks and benefit from compensation in the event of financial loss. Contact KT Assur&Bank today to find the solution best suited to your business and situation.