Is professional liability insurance mandatory? The list of professions concerned in 2026

Mandatory professional liability insurance in France applies only to a closed list of regulated professions: healthcare, law, accounting, real estate, construction, insurance intermediation, travel and passenger transport. For every other business, including the vast majority of service companies, software vendors and manufacturers, professional liability insurance (RC Pro) is optional under the law. It nevertheless becomes unavoidable the moment you sign with a large account or raise funds: the obligation is no longer legal, it is contractual.

What exactly is professional liability insurance?

Professional liability insurance (RC Pro in France) covers the damage your company causes to third parties, clients included, while delivering its services: wrong advice, a configuration error, a bug that halts a client's production. It pays the victim's compensation and your defence costs.

It is often confused with general liability (RC exploitation). General liability covers damage caused to third parties by the day-to-day running of the business, regardless of the quality of the work: a visitor who slips in your offices, an employee who damages a client's equipment. Most SME policies bundle both, but limits and exclusions differ.

Is professional liability insurance mandatory for every company?

No. No general statute requires every business to carry liability insurance. French law proceeds profession by profession: cover is imposed where a mistake can cause serious harm to a vulnerable public, or where the professional handles other people's money or safety. The official portal entreprendre.service-public.gouv.fr puts it plainly: insurance is mandatory if you practise a regulated activity, meaning one whose access or practice is conditioned by law (diploma, registration with a professional body, professional card). Insurance is then a condition of practice, checked on entry and periodically, and its absence exposes you to disciplinary or criminal sanctions.

Which professions are subject to mandatory professional liability insurance in 2026?

The minimums for insurance intermediaries were raised by the order of 29 October 2024 to track European inflation, as explained by Planète CSCA. For chartered accountants, the decree of 30 May 2025 strengthened the mandatory content of the policy from 1 July 2025 without setting a monetary floor.

What if my activity is not regulated: consulting, SaaS, agency, manufacturing?

Then the law requires nothing. A software vendor, an agency, a consulting firm or a manufacturer may, in theory, operate with no liability insurance at all. The only sanction is ordinary civil law: articles 1231-1 and 1240 of the Civil Code require your company to compensate the damage out of its own funds. For a business billing €3 million to clients worth €500 million, a single error can represent several years of profit. The question is no longer "am I required to?" but "who bears the risk if I get it wrong?".

The legal obligation protects patients and savers; the contractual obligation protects your revenue. The second reaches far more companies than the first.

Why does a scale-up that is not required to buy professional liability insurance do so anyway?

The first reason is contractual. Large accounts' purchasing terms, tenders and framework agreements almost always include an insurance clause: the supplier must hold professional liability cover with a minimum limit, frequently €1M to €5M per claim for a digital provider, and produce a certificate every year. We detail these mechanisms in our analysis of risky clauses in enterprise contracts.

The second is financial. During a fundraising round, investors conduct due diligence, a prior audit of the company that includes a review of its insurance. A scale-up serving business clients without professional liability cover carries an unmeasured potential liability on its balance sheet, and the shareholders' agreement often requires a full insurance programme within weeks of closing. Our article on insurance audits in fundraising due diligence describes what funds look at.

The third is technical: a modern professional liability policy for a digital company also covers claims arising from service unavailability or loss of entrusted data, where the boundary with a cyber incident is thin.

How much does professional liability insurance cost an SME or scale-up in 2026?

Price depends on turnover, activity, limit, deductible and claims history. For a freelance consultant or developer, online brokers' 2026 price grids range from €200 to €400 per year for around €60,000 of turnover. For a services SME or SaaS vendor with 20 to 100 employees, and €2M to €5M limits required by clients, the premium generally runs into thousands of euros per year, rising sharply when the activity touches health data, finance or industrial systems.

The limit of indemnity is the maximum the insurer will pay, per claim and per year; it is what your clients read on the certificate. The deductible is the share of each claim you keep; raising it lowers the premium (see our ten ways to reduce a premium).

Which clauses should you check in a professional liability policy before signing?

The trigger basis first. Article L124-5 of the French Insurance Code allows two systems for professionals. On an "occurrence" basis, the policy in force at the time of the fault pays, even if the claim arrives years later. On a "claims-made" basis, the policy in force when the client claims pays, with an extended reporting period, a window after the policy ends during which claims remain covered, of at least five years. Switching insurers without checking retroactive cover can create a gap.

Then check the declared activities, since the insurer covers only those, and the territorial scope.

Frequently asked questions

Is professional liability insurance mandatory for an SAS or SARL?

No, the legal form creates no obligation. Only the activity matters: an architecture or brokerage SAS is subject to the requirement, a software SAS is not. Its clients may however require it by contract.

What is the difference between professional liability and ten-year (decennial) insurance?

Decennial insurance (art. L241-1 of the Insurance Code) covers for ten years the damage that compromises the solidity of a building or renders it unfit for purpose. Professional liability covers the builder's other faults. Construction needs both.

Can a client require professional liability insurance when the law does not?

Yes, it is in fact the rule in B2B. The insurance clause sets the limit, sometimes a maximum deductible, and provides for an annual certificate; failing to comply is a breach of contract.

What does a regulated professional risk by practising without cover?

Disciplinary sanctions (striking off, withdrawal of the professional card) and sometimes criminal ones: up to €45,000 in fines for a healthcare professional, 6 months' imprisonment and a €75,000 fine for a builder without decennial cover. Plus full compensation of the damage out of own funds.

At Lesto, we start from your actual activity and the clauses your clients and investors impose: we separate what is mandatory, what is required by contract and what is simply sensible, then consult nine insurers on average to obtain the expected limit at the right price. Need to produce a certificate or renegotiate an existing policy? Discover our professional liability offer and get an analysis within 72 hours.