Business multi-risk insurance in Luxembourg: cover and advice on choosing the right policy

Business multi-risk insurance is a policy that brings together several distinct covers into a single contract. Rather than taking out separate policies for business liability, fire and associated risks, the company benefits from comprehensive protection managed through a single provider.

This type of policy generally covers:

• business assets: premises, equipment, furniture and stock
• third-party liability
• business continuity through business interruption cover
• optional covers depending on your sector and level of risk exposure

This cover protects against physical damage to your business assets and/or your liability as a tenant following an insured event. The risks generally included in the policy terms and conditions are:

• fire and associated risks (explosion, lightning)
• water damage (leaks, burst pipes)
• theft and vandalism
• glass breakage

Additional risks may be included under the specific terms of your policy, such as:

• storm, hail and weight of snow
• flooding and natural disasters
• electronic equipment all-risks cover
• machinery breakdown

The sums insured, applicable excesses and any limits are set out in your policy schedule. They cannot be regarded as standard from one policy to another.

Business liability cover

Business liability insurance covers the financial consequences of your liability for accidental damage caused to third parties in the course of your business operations. It may include several components:

• public liability: damage occurring in the course of your business operations
• products and post-completion liability: damage caused to third parties by a product or work after delivery or completion
• property in your care, custody or control: damage to property belonging to third parties and temporarily in your care in the course of your business operations
• accidental pollution: cover for damage caused to the environment as a result of an accidental event
• legal defence and recourse: cover for certain legal costs in criminal defence and civil proceedings, within the contractual limits

The damage covered may be bodily injury, property damage or consequential financial loss arising from an insured event.

Business interruption

Business interruption cover compensates, in simple terms, for a loss of turnover and the additional costs incurred by a business following an insured material event (fire, water damage, storm, etc.). An important point: this cover never operates on a standalone basis. It is always conditional on prior insured physical damage (fire, water damage, storm, etc.).

Depending on your policy, several options may be available: lump-sum compensation, calculation based on gross profit, or reimbursement of additional costs incurred to maintain business operations.

Extensions of cover

Certain protections are only in force if they are expressly included in your policy schedule:

• electronic equipment all-risks cover (IT equipment, servers)
• machinery breakdown
• goods in transit cover

This type of policy is available to any professional carrying out a business activity in Luxembourg:

• self-employed individuals and independent professionals (lawyers, architects, consultants, estate agents, etc.)
• tradespeople and retailers
• micro-enterprises and SMEs, regardless of their sector
• businesses with premises, offices, workshops or warehouses

Certain regulated professions (e.g. medical, legal, real estate and architectural sectors) may be subject to a legal requirement to hold professional liability insurance. A multi-risk policy does not necessarily replace these specific obligations: you should check the requirements applicable to your activity, in particular on the guichet.lu website.

Choosing the right policy requires a clear assessment of your situation. Here are the key elements to consider before taking out cover:

Your risk exposure

• nature and size of your premises
• type of activity (office-based, mobile, with or without public access)
• value of equipment, stock and assets

Your contractual obligations

• requirements set by your landlord (commercial premises)
• insurance clauses in your contracts with clients
• obligations linked to your sector of activity

Your financial position

• annual turnover
• ability to absorb an excess in the event of a claim
• claims history

An adviser can help you ensure that the cover you take out genuinely reflects your business activity.

Acting quickly and appropriately in the first few hours after an incident helps ensure your claim is handled efficiently.

1. Make the premises safe
   Take immediate steps to prevent further damage (turn off the water supply, disconnect electricity, secure access).
2. Gather evidence
   Photograph the damage before any cleaning or removal. Keep invoices, inventories, contracts and any documents relevant to assessing the loss.
3. Report the claim within the required timeframe
   Inform your insurer as soon as possible, within the required timeframe.
4. Use your usual contact channel
   Online customer portal, email or direct contact with your adviser — use the fastest available option.
5. Provide the requested documents
   Respond promptly to any requests for additional information. A complete file will significantly speed up the handling of your claim and the payment of compensation.