When it comes to insurance, non-material damage is often overlooked, even though it can have significant financial consequences. Unlike property damage or bodily injury, it involves financial losses incurred as a result of a disaster. In this article, discover everything you need to know about non-material damage in insurance, how it's covered, and how to protect yourself.
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 damage. It may result from pre-existing bodily injury or material damage.
Examples of non-material damages:
- Loss of business for a company after 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 Non-material Damages
a. Consequential Immaterial Damages
These damages result 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 bodily damage preceding them. Examples:
- A company suffering financial loss due to a service provider's failure to provide advice.
- A loss of opportunity linked 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 damages caused to third parties by an error, delay or professional misconduct.
- 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 paying 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
Non-material damage can lead to significant 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. Guarantee 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 Non-Material 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.