Business insurance: professional error, business interruption, customer accidents, entrusted goods and faulty work

In short

The core protections of the Insurance Act (disclosure, forfeiture, late notification, the injured party’s direct claim) also apply to businesses. Some consumer rules, such as termination at any time after the first year and the unfair terms rules, do not.

Your professional liability policy may be written on a “claims made” basis. If you notify the insurer in writing of a circumstance that could lead to a claim before the policy ends, claims made in the 36 months after it ends remain covered.

Business interruption (lost turnover, rent, salaries) is a separate cover. The building and machinery cover of a fire policy does not pay these items on its own.

A customer can claim directly from your liability insurer. The insurer cannot turn the customer away by saying “it was the cleaning company’s fault”; it pays and then recovers from the cleaning company.

Entrusted goods, activities not described in the policy and the cost of redoing faulty work are excluded in most policies. These gaps are closed with extra cover and an accurate description of your activities.

The Insurance Ombudsman also accepts complaints from the self-employed and companies, free of charge.

First: which rules protect you as a business?

The contract provisions of the Insurance Act (4 April 2014) apply to all non-marine insurance governed by Belgian law and are, as a rule, mandatory (art. 54, 56). So the duty of disclosure (art. 58-60), the causation requirement for forfeiture (art. 65), the proportionate sanction for late notification (art. 74-76), aggravation of risk (art. 81) and the injured party’s direct claim (art. 150) all apply to a business policy too.

Where businesses are treated differently from consumers:

No termination at any time, and multi-year policies are possible: the right to terminate at any time after one year with two months’ notice (art. 85/1) only covers consumers. The one-year maximum term does not apply to most business risks either: property insurance other than simple risks, business interruption, and all liability insurance other than motor, private life and simple-risk fire liability may be concluded for longer (art. 85 §2; Royal Decree 24.12.1992, art. 1). According to the Ombudsman, business liability policies often run for 3 years, and termination only takes effect at the end of the 3 years (2025 report). Check your policy’s term and terminate at least two months before expiry by registered mail, bailiff’s notice, delivery against receipt or the insurer’s digital channel with a qualified e-signature (art. 84, 85).
No unfair terms control: the unfair terms rules of the Code of Economic Law (Code de droit économique, CDE) are for consumer contracts. The business-to-business unfair terms rules (CDE VI.91/1 ff., for contracts concluded from 1.12.2020) do not apply to “financial services” (VI.91/1 §1), and the Code expressly defines insurance as a financial service (CDE I.8, 18°). The King may extend these rules to financial services by royal decree; no such decree was found. A business therefore relies on the mandatory rules of the Insurance Act and general contract law. For contracts concluded after 1.1.2023, a standard-form contract is, in case of doubt, interpreted against the party that drafted it (Civil Code art. 5.66, 1°).
Interpretation in your favour still applies to most SMEs: an unclear clause is read in favour of the policyholder (art. 23 §2). The exception is “large risks” (grands risques). For fire, property and general liability insurance, a business is a large risk only if it exceeds two of these three criteria: total balance sheet of €6.2 million, net turnover of €12.8 million, an average of 250 employees (art. 5, 39°).
Fire payment timetable for small premises: premises insured below certain thresholds are “simple risks”. The 15/30/90-day payment timetable for fire claims (art. 121) applies to them too. Business interruption cover falls outside this protection (see below).
Free proof: against a business and between businesses, any type of evidence may be used (Civil Code art. 8.11).

The Insurance Ombudsman’s procedural rules list complainants as “consumer, insured person, private individual, self-employed person, association, company”. The rules exclude “disputes of a commercial nature” and disputes between insurance professionals (e.g. between an intermediary and an insurer). A business’s complaint about its own policy is not one of these: the Ombudsman’s 2025 report has a separate section on business liability insurance, and complaints in this area rose by 58% in 2025. The same report notes that in this branch the insurer’s position is “generally hard to challenge”, so submit the full policy wording with your complaint. See the Ombudsman guide for details.

A client claims damages for an error in my consultancy work; my insurer says the risk was “known in advance” and that I reported it “too late”

The date from which you are covered depends on the time clause in your policy. That clause has to be read together with what you knew before the policy started and when you reported the matter.

Which policy does the event fall under?

The rule: damage occurring during the term of the contract is covered even if the claim is made after the contract has ended (art. 142 §1). According to the Court of Cassation, the “damage” in this article is the damage provided for in the contract and caused to the injured party by the insured’s fault (Cass. 29.9.2023, C.23.0014.F).
Claims-made policy (base réclamation): in professional liability, policies often cover only claims made in writing during the term of the contract (art. 142 §2). This clause is lawful in general liability lines; it is prohibited in family liability and simple-risk fire liability (Royal Decree 24.12.1992, art. 6bis). The law still provides a 36-month extension in two cases:
- the damage occurred during the term of the contract and, when the contract ends, the risk is not covered by another insurer;
- the circumstance that could give rise to damage occurred during the term of the contract and was reported to the insurer.
The 36-month extension applies unless another insurer covers the claim (Cass. 16.1.2015, C.14.0294.N). A written claim by the client to you or to the insurer is enough; court proceedings are not required (Cass. 4.6.2026, C.24.0365.N, on art. 78 §2 of the former Act, which has the same wording).

The “known risk” defence: a risk known to have materialised when the contract is concluded cannot be insured (art. 79). If you knew of the error before the policy started, the fact that the client had not yet claimed makes no difference (Brussels Court of Appeal 13.10.1993). Failing to tell a new insurer about something you knew is a breach of the duty of disclosure (art. 58-60). But the insurer must prove that you actually knew of the error and its possible consequences before the policy; the fact that the error is old is not enough on its own. In that case, look at your former insurer’s policy and the 36-month extension.

The “late notification” defence: the duty to notify arises when you know or ought to know that you may be held liable (Cass. 21.4.2023, C.22.0226.N). A delay only allows a reduction equal to the insurer’s loss; a full refusal requires an intention to deceive (art. 74, 76). In a claims-made policy, the objection “the claim came outside the policy period” is not late notification but the time limit of the cover; keep the two apart.

In practice: gather the policy, the special conditions and the previous policy. Document when you first noticed the error and the date of the client’s first written claim. When changing insurer, ask whether the new policy covers past activities (antériorité). The limitation period for suing your insurer is 3 years; if the client has sued you, your claim against your insurer runs from that date (art. 88 §1). Professional liability insurance is compulsory for some professions; in compulsory insurance, the insurer cannot raise exclusions and forfeitures against the injured party (art. 151 §1).

My business was closed for months after a fire; the insurer will not pay lost turnover, rent or salaries

These items are only paid if your policy contains a separate business interruption cover (pertes d’exploitation, Dutch bedrijfsschade). Building and machinery cover does not include lost turnover on its own.

What the law says: loss of use and loss of expected profit are insurable losses, but only if the contract covers them (art. 93). The simple-risks regime excludes business interruption, except for a flat daily allowance (Royal Decree 24.12.1992, art. 5 §4). The decree expressly removes “business interruption insurance other than insurance guaranteeing a daily allowance” from the definition of simple risks (art. 5 §4, 4°). The 15/30/90-day timetable for fire claims (art. 121) therefore does not apply to the business interruption part. Business interruption is not insurance of a “thing” either; the expert and payment timetable of art. 111/1 sits in the Act’s chapter on property insurance. The general rule of art. 73/1 applies: if the insurer disputes cover, it must give a reasoned answer within 3 months; otherwise a flat €300 is due, plus €300 per day after a reminder. The undisputed amount is paid within 30 days of being fixed (art. 73/1 §6).

Depending on your situation:

No cover: the insurer’s refusal is, as a rule, correct. If someone else caused the fire (a neighbour, a repair firm), you can claim lost turnover and fixed costs from that person and directly from their liability insurer (art. 150).
Flat-rate (turnover) formula: in this formula, sold to small businesses, the amount is fixed in advance; disputes usually concern the period and payment conditions.
Actual loss formula: what is insured is the gross margin (marge brute): fixed costs plus operating profit. Fixed costs that continue, such as rent and salaries, are part of that amount. Temporary premises, overtime and subcontracting are also paid as additional costs under most policies. The limit is the indemnity period (période d’indemnisation) in the policy, for example 12 months. (These definitions reflect market practice; the definition in your policy prevails.)
Calculation: the loss is the difference between the gross margin you would have earned without the fire and what you actually earned. Previous years’ accounts, seasonality and growth trends are used. Costs saved are deducted.
Underinsurance: if the gross margin you declared is lower than the real figure, the insurer may apply the proportional rule (art. 98). Check whether the policy waives this rule.

Salaries: a fire is an example of “force majeure” accepted by the National Employment Office (ONEM/RVA); you can apply for temporary unemployment for your staff. This reduces your wage costs, and the insurer will take the saving into account.

In practice: ask your accountant for a monthly table of turnover and gross margin for the last three years, payroll records and the lease. Answer the insurer’s expert with your own figures; if the policy covers “expert fees”, appoint your own expert. Ask in writing for the undisputed part to be paid. The limitation period against the insurer is 3 years (art. 88). For how home and fire claims work in general, see the home damage guide.

A customer slipped on a wet floor in my shop; my insurer says it was “the cleaning company’s fault”

The customer can claim from you and also directly from your business liability insurer (RC exploitation). The fact that the cleaning company was also at fault does not change this; it only affects who pays how much afterwards.

Liability: for events on or after 1.1.2025, Book 6 of the new Civil Code applies (fault liability, art. 6.5; keeper of a defective thing, art. 6.16). For earlier events, former art. 1382-1384 apply. Fault depends on facts such as warning signs, the time of cleaning and the condition of the floor; no firm conclusion can be given here. Where the faults of several people together caused the damage, each is liable to the injured party for the whole; the fact that someone else was also at fault does not remove your liability (Cass. 12.1.2007, C.05.0083.N).

The insurer’s position:

The injured party has its own direct claim against the insurer (action directe, art. 150). Since 1.10.2024, a liability insurer must make a reasoned offer or reply within 3 months; otherwise interest and flat-rate amounts run (art. 145/1-145/5).
“The cleaning company was at fault” is not an exclusion of cover but a liability argument. The insurer pays to the extent of your liability and then recovers from the cleaning company and its insurer by subrogation (art. 95).
In voluntary liability insurance, facts arising after the loss (for example late notification) cannot be raised against the injured party (art. 151 §2).
Your family liability insurance does not apply here; damage arising from the professional activity itself is excluded (Cass. 6.9.2013, C.12.0360.F).

In practice:

Record the date and time, photos, witnesses and the cleaning schedule. If there is camera footage, keep an eye on the retention period.
Notify your insurer and the cleaning company in writing straight away.
Check whether your cleaning contract contains a waiver of recourse (abandon de recours) or a liability cap.
Giving first aid and acknowledging what happened does not affect your cover. But do not promise payment without the insurer’s agreement (art. 149).

The customer can bring a direct claim against the insurer within 5 years of the event (art. 88 §2). For personal injury heads of loss, see the injury compensation guide.

A customer’s phone or bag left with me went missing; the insurer says “entrusted goods are excluded”

The customer can claim from you. The insurer’s objection is often in line with the contract: business liability policies usually cover goods left in your care (biens confiés) only with extra cover.

Your liability: if you took the item for a job (repair, servicing), keeping it safe and returning it is part of the service contract. The deposit rules (dépôt) also give guidance: the depositary must take the same care of the item as of its own, and that duty is assessed more strictly if it is paid for (former Civil Code art. 1915, 1927, 1928). The key question is whether the item passed into your care. A coat you took in at the cloakroom is not the same as a bag kept by the customer’s chair in their own sight. The Civil Code’s new book on specific contracts (Book 7, including deposit) will enter into force on 1.9.2027 and will only apply to contracts concluded after that date; the former rules apply to current contracts.

A sign saying “we are not responsible for belongings”: such a sign only becomes part of the contract if the customer could see it before the contract was made. Even then it has limits:

Towards a consumer, a clause releasing the business from liability for its own intent or gross negligence, its staff’s gross negligence or (except in case of force majeure) failure to perform a main obligation is always unfair and void (CDE VI.83, 13°, VI.84). If you took an item for safekeeping, returning it is a main obligation.
In contracts concluded after 1.1.2023, a clause excluding liability for intentional fault, and a clause that empties the contract of its substance, are deemed unwritten (Civil Code art. 5.89 §1).
At most, the sign serves as a warning for items that never passed into your care.

Insurance:

The Ombudsman’s 2025 report draws the line explicitly: the theft of a customer’s belongings in a wellness centre is one of the examples covered by business liability insurance, whereas “damage to entrusted objects” is not covered.
The policy examined by the Liège Court of Appeal covered goods entrusted for work only by special agreement. The repair workshop’s policy had been extended only to customer vehicles “entrusted in order to work on them”. Winter storage was treated as a separate activity, and no payment was due because the “car park operator” cover had not been taken out (Liège Court of Appeal 9.9.2013, 2012/RG/1291).
In family liability insurance, the law expressly allows an exclusion for goods in your care; the Ombudsman finds most such refusals justified (2025 report). There is no such statutory minimum list for business policies; the policy wording decides.
An exclusion must be clear and precise; doubt is resolved in your favour (art. 23). If the policy refers to “goods entrusted for work, a service or advice”, it is arguable whether a cloakroom item falls within that definition.
Your business contents or theft policy may cover “property belonging to third parties”; check that too.

In practice: record the loss in writing; report it to the police if you suspect theft. Inform the insurer before settling with the customer (art. 149). In future, cover this risk with an “entrusted goods” extension or with a cloakroom and lockers. For the same issue in a family policy, see the family liability guide.

My policy only mentions cleaning; we damaged the building during a small repair the client asked for

If the damage arose outside the activity described in the policy, the insurer may refuse cover. But the outcome depends on how broadly the policy describes your activity, whether the repair was really a separate activity and what the insurer or intermediary knew.

The rule: the activity description defines the scope of cover. The Liège Court of Appeal held that damage caused during an activity not listed in the policy was not covered (9.9.2013, 2012/RG/1291). The Ombudsman takes the same line: “any task outside the declared activity may lead to a refusal of cover” (2025 report). Because the activity description defines the insured risk itself rather than your conduct, it is a limit on scope, not a forfeiture; the insurer does not also have to prove causation (the causation requirement of art. 65 only applies to forfeitures).

Points that may help you:

The wording itself: if the policy says “cleaning and related work” or “ancillary activities”, you can argue that a small repair is covered. An unclear description is interpreted in your favour (art. 23 §2).
What the insurer knew: you do not have to declare circumstances that the insurer knows or ought to know (art. 58). If repair work appeared in the proposal form, on your website or in an e-mail to your intermediary, rely on it.
Aggravation of risk? If you permanently expanded your activity, you had to report it (art. 81). If you did not, the outcome depends on your fault: full payment, proportional payment or refusal only in case of fraud. The Liège Court of Appeal treated the unreported opening of a restaurant that was insured as “under renovation” as an aggravation; because the insurer could not show it would never have insured the risk, it was ordered to pay proportionally (25.6.2008, 2005/RG/1708). The law only targets a “significant and lasting” aggravation (art. 81 §1); a one-off job does not easily fit that definition. Moreover, only changes that increase the probability of the insured event count as aggravation, not those that only affect the size of the loss (Cass. 7.3.2022, C.21.0384.N). If the insurer relies on “outside the scope” rather than “aggravation”, these rules do not apply directly; ask in writing which objection it is making.
Professional licence: if the work requires a professional qualification (e.g. a registered installer) that you do not have, the insurance contract is not unlawful for that reason alone (Cass. 18.3.2022, C.20.0291.F).

The intermediary’s role: if you described your activities to your intermediary and were not offered a suitable policy, the intermediary may have breached its duty to advise (art. 284). That claim arises from the contractual relationship (Cass. 16.3.2018, C.17.0200.F). But an intermediary is not required to look into a risk you did not mention (Mons Court of Appeal 15.1.2017, 2015/RG/810). A written record of what you told them is therefore important.

In practice: gather the activity description in the policy, the proposal form and your correspondence with the intermediary. Check whether the repair was invoiced as a separate item. The building owner can claim against you for breach of contract; if the insurer does not cover it, you pay. Broaden your activity description for the future. For problems with intermediaries, see the intermediaries and records guide.

My work turned out to be faulty; the insurer will not pay to redo it, only for damage to other property

This distinction is common in business and professional liability policies and is applied by the courts. The cost of correcting or redoing the work itself is excluded in most policies. Damage that the faulty work causes to other property or to people is covered.

What the courts said:

The Liège Court of Appeal found clear, and applied, an exclusion for “the non-performance or poor performance of the very object of the contract, in particular costs incurred to redo or correct poorly performed work”. According to the same court, the cover exists to compensate damage caused by a defective product to third parties (Liège Court of Appeal 9.2.2009, 2007/RG/1725).
In another case, the same court applied a clause excluding damage resulting from failure to carry out the work undertaken. It held that the policy could not be given the effect of an “all-in cover after works” (omnium après travaux) (Liège Court of Appeal 9.9.2013, 2012/RG/1291).
The Ombudsman also lists “professional errors such as poorly performed work” among the cases business liability insurance does not cover (2025 report).
The logic: liability insurance covers unexpected damage; it does not guarantee that the work will be done properly.

An example: bathroom tiles were laid incorrectly. Removing and relaying the tiles is the work itself and, as a rule, is not paid. If water leaked through the joints and damaged the ceiling below and the customer’s parquet, that is damage to other property and, as a rule, is paid. For items in between (removing sound parts to reach the faulty one, removal and refitting costs, loss of use), the policy definition decides. If it is unclear, it is read in your favour (art. 23 §2). Some policies offer extra cover for these costs; read yours with this in mind.

A separate insurance in construction: for residential buildings, 10-year liability insurance is compulsory for serious defects that endanger the solidity and stability of the building. The obligation applies to works whose final building permit was issued after 1.7.2018 (Act of 31.5.2017; former Civil Code art. 1792, 2270). This insurance is different from business liability cover; if you have it, notify that insurer too.

In practice: ask for the expert report to split the heads of loss into “the work itself” and “other property”. Ask the insurer in writing which item it refuses and on which clause. Obtain the insurer’s agreement before settling with the customer (art. 149). For the unpaid part, check the liability limits in your contract; if the customer is a consumer, those limits are subject to unfair terms control. For how to challenge a refusal, see the refused claim guide.

Checklist

You can search decisions on similar disputes on the Decisions page.

Sources

This guide is general information, not legal advice. Current as of 09.10.2026.