What are the legal risks facing intermediate-sized businesses?

In France, businesses are classified according to their size – very small businesses (TPE), small and medium-sized businesses (PME), intermediate-sized businesses (ETI) and large businesses (GE). While there is a high concentration of microbusinesses, intermediate-sized businesses account for a significant proportion of economic activity.

There are 7,000 of these businesses in France, which represent a quarter of the country’s economic activity and constitute a major source of employment, employing 3.7 million people.^*

These figures come with a growing number of standards and regulations that these companies have to observe.

A study by METI and Mawenzi Partners in June 2023 shows that with the surge in social and tax standards since 2018 – with more than 720 new standards published each year since 2011, bringing the total number of regulations currently in force at to around 400,000 – heads of intermediate-sized businesses feel a sense of uncertainty about legal issues. This feeling is accentuated by differences in how regulations are interpreted by the administrative authorities.

According to the study, 63% of heads of intermediate-sized businesses do not have enough time, which severely affects how they are able to manage risk.

In the light of this, how can you safeguard your business?

Many legal protection policies include a legal information service, even if the company is not involved in a dispute. A service such as that offered by MMA’s Legal Protection for businesses helps clients understand current regulations in order to avoid mistakes and therefore potential litigation. As Magali Vavasseur, Head of Legal Protection Activity and Professional Development at MMA, puts it: “Legal protection is there to help businesses on a day-to-day basis”.

Heads of intermediate-sized businesses can find themselves dealing with a number of legal issues in one day. 

What should they do if:

• A recently installed piece of equipment is not working and the supplier is unable to find a technical solution?
• A slowdown in business means that they need to think about cutting jobs?
• They receive a letter from the owner of their business premises telling them that their rent is going up significantly?
• They are subject to an unannounced inspection of whether their premises meet public accessibility requirements?

Knowing your rights is essential in order to be able to respond and act appropriately. However, this can come at a cost if you do not have access to a legal information service. 

The wide range of issues that arise means it is hard to fully understand all applicable regulations.

In addition to these administrative and regulatory challenges, businesses are subject to market risks, namely the legal risks that intermediate-sized businesses may face.

The QBE & Opinion Way survey conducted in 2025 on risk management for small and medium-sized businesses and intermediate-sized businesses shows that 78% of intermediate-sized businesses are exposed to market risks. This marks an increase of 22 points between 2022 and 2024, pointing to a growing trend.

The top three market risks identified by heads of intermediate-sized businesses are products, competition and clients.

A legal dispute relating to products concerns the contractual relationship with the supplier. Suddenly breaking off the contractual relationship can compromise a business’s financial stability, affecting current projects and creating difficulties in obtaining raw materials.

Legal protection can play a key role in the event of a legal dispute. At MMA, two thirds of legal protection cases are resolved amicably. In this situation, a legal expert contacts the supplier directly in order to remind them of their contractual commitments governing contract termination, and that abruptly breaking off the contract without notice makes them liable for damages and interest. In many cases, the involvement of a legal expert can defuse the situation.

In terms of competition, intermediate-sized businesses are – by definition – innovative and particularly exposed to the risk of intellectual property infringement, such as patents being used by competitors without permission, trademark infringement and counterfeiting.

Intermediate-sized businesses may therefore come up against unscrupulous behaviour such as unfair competition, parasitism (e.g. imitating a business’s design or advertising concept with no innovation of their own in order to boost their reputation), discrediting or denigration, or even unlawfully poaching clients.

Legal disputes of this kind require action that is appropriate to the specificities of the legal framework, with the aim of resolving the situation quickly in order to limit the negative impact in terms of image and revenues as much as possible.

MMA’s Legal Protection insurance for businesses offers one-stop solutions^** to address these competition-related risks, providing coverage for legal disputes anywhere in the world, intellectual property cover and support with crisis communications in order to protect the business’s image. “Having legal protection with MMA gives you a high level of cover against the main market risks,” explains Magali Vavasseur, Head of Legal Protection Activity and Professional Development at MMA.
Legal disputes with clients can take a number of forms, such as accusations of late provision of a service, alleged defects or even comments posted online with defamatory statements that may impact the company’s image.

Far from inducing anxiety or being fatalistic, prevention remains the best form of protection. And to do this, legal protection provides real everyday support allowing businesses to manage any disputes. At MMA, businesses with legal protection benefit from total cover of €20,000 to €70,000 per dispute, as well as comprehensive support from when a dispute arises to when it is resolved. “In addition to covering legal costs, MMA’s Legal Protection also gives you the benefit of human support at each stage of the litigation process,” highlights Magali Vavasseur, Head of Legal Protection Activity and Professional Development at MMA.

Under our policies, the actual cost of expert support is covered in both amicable and court proceedings.^**

* French Directorate General of Enterprises (DGE) topic for May 2025 
** Subject to conditions, cover, limits and contractual exclusions. Legal protection policies are insured and managed by Covéa Protection Juridique.