Entrepreneurship means anticipating all market risks. You can quickly find yourself out of a job because your investment didn't work out. Company directors need to protect their backs by taking out unemployment insurance. It has to be said that company directors are the least covered in the event of their business going bust. It is therefore very important to check their situation with Pole Emploi and, above all, to protect their income with executive unemployment insurance.
Executive unemployment insurance: what is it?
Today, only 14% of managers have taken out unemployment insurance. This is an insurance policy that allows you to keep between 55 and 100% of your income. For most company directors, losing their job means losing their income. What's more, the Unedic unemployment insurance scheme is not suitable for many people. As a result, it is essential to take out executive unemployment insurance to cover your company's insolvency and ensure a regular income. For most company directors, this type of insurance is seen above all as psychological support.
How does executive unemployment insurance work?
Executive unemployment insurance takes effect after 1 year's membership. After the first year, you can receive daily unemployment benefits for a maximum of 12 months. To select the contract best suited to your situation and your needs, you need to carry out an in-depth comparative study. However, it has to be said that offers differ on many points. In addition to the reason for unemployment covered, there are other specific features such as the duration of compensation, the benefits paid, the amount of the insurance rime and the ancillary costs.
In fact, there is currently an unemployment insurance scheme designed for managers and by managers. There are 3 employers' organisations in the GSC: the MEDEF, the CGPME and the UPA.
What is covered by unemployment insurance for managers?
GSC (Garantie sociale des chefs et dirigeants d'entreprise) was created on the initiative of professional employers' organisations.
Above all, it enables company directors and officers to benefit from compensation in the event of loss of professional activity.
It should be noted, however, that executive unemployment insurance provides income in proportion to previous earnings. This type of insurance is also available to company officers, whether they are employees, self-employed, sole traders, company founders and buyers, etc., in the event of involuntary loss of employment.
It should be noted that executive unemployment insurance covers, among other things :
- A payment of 70% of net professional tax income (excluding dividends)
- A contribution period of 12 months before compensation
- A waiting period of 30 days for payment of benefits from 31 December.eday
- A contribution payment period of between 12 and 24 months, depending on the option chosen
All situations of involuntary job loss are also covered (judicial liquidation or assignment, merger, takeover, sale or distribution following economic difficulties, etc.).
The executive's unemployment insurance contract provides several insurance formulas with 3 payment periods: 12, 18 and 24 months. The last two terms are only available at the company's option after one year's membership.
It should also be noted that there is a "business creator" or "business takeover" scheme for business creators whose professional income is zero or less than 50% of the annual social security ceiling.
Unemployment insurance for managers: market research needed
It's important to remember that each insurance policy has its own terms and conditions. As a result, it's very difficult to pass up the opportunity to carry out a detailed market study to find out which insurance best suits your needs. You should also check whether you have the option of reducing or increasing your contributions each year. In particular, you should check whether, during a period of receivership when you decide to reduce your payments, the insurance company could pay you the top-up. You should also find out whether there is an age limit for receiving this compensation.
Who should I take out a policy with?
Today, several organisations market this type of insurance, which they consider to be highly specific. In most cases, the insurance offers two basic functions:
- A basic guarantee corresponding to a contribution of 3.5% of income for an indemnity corresponding to half the income
- An improved guarantee corresponding to a contribution of 5% of income for an indemnity ranging from 70 to 100% of income.
Note that a contract signed under the Madelin law gives the right to a partial deduction of the contribution from taxable income. These contributions are expressed as a percentage and are linked to the insured's income.
It should also be pointed out that many insurers now charge an entry or administration fee of around 100 euros. So you need to find out how to take out this type of insurance from the various organisations.
Finally, it should be pointed out that there may be a number of constraints on taking out insurance, particularly as regards the company's good health. Some insurers require the company director to complete a questionnaire or undergo a balance sheet study. Others also set age criteria, and their executive unemployment insurance is aimed at those under 60.
Compare offers
Before taking out executive unemployment insurance, it's important to compare the offers from the various organisations. If the aim is to help the executive get back on his feet, comparing the different offers is never easy. Request a quote on our site to compare the best offers and make your choice. Please note that your company must be in good health when you take out the insurance. In addition, there is a 12-month waiting period before you can receive compensation.
Executive unemployment insurance
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