Liability insurance: so that a mistake with a third party doesn't put your business at risk
A customer injured on your premises, a defective product, damage caused on a job or a professional error. When your business causes harm to others, the law requires you to put it right. Liability insurance pays for your defence and the damages.
The insurance that responds when your business causes harm to others
Spanish civil law requires anyone who causes harm to another through fault or negligence to make it good, and makes companies liable for damage caused by their employees in the course of their work. Liability insurance covers those third-party claims.
It is not a single policy but a set of covers combined according to the business: an office does not need the same as a factory, a builder, an exporting distributor or a consultancy selling its expertise.
In many activities it is also a requirement: it is demanded by sector regulations, professional bodies, public authorities in their tenders and, increasingly, by clients themselves before signing a contract.
In a nutshell
If a third party claims against you for personal injury, property damage or financial loss caused by your business, the policy pays for the defence and the damages due, within the limits purchased.
The covers that make up a sound liability programme
We design the policy by combining the covers your business needs, no more and no less.
General or public liability
Damage caused to third parties by the company's day-to-day activity, its premises and its employees.
Employers' liability
Claims by your own employees for workplace accidents for which the company is held responsible.
Products and completed operations
Damage caused by the products you manufacture or distribute, or by work already handed over, such as an installation or a refurbishment.
Professional liability
Financial loss caused to clients by errors or omissions in the advice or professional service provided.
Tenant's liability
Damage to the premises or warehouse the company rents, against the landlord's claim.
Environmental liability
Accidental pollution and obligations to remedy environmental damage arising from the business.
Claims we see every year
On your premises
A visitor trips in the warehouse, a customer is injured in the shop or a water leak from your unit damages the neighbour's.
At the client's home
An installer starts a fire while welding, a refurbishment firm damages a pipe or a removal company breaks furniture.
Because of a product
A defective component damages the customer's machine or a food product causes food poisoning.
Because of advice
An error in a technical design, an audit or an IT implementation causes financial loss to the client.
To your employees
A serious workplace accident in which the employee or their family claim against the company for lack of safety measures.
Outside Spain
Products sold in other countries that give rise to claims under their own courts and for much larger amounts.
Two liability policies with the same limit can respond very differently
Before recommending a policy, we compare the market and review the points that, when a claim arises, decide whether it is covered.
- Business description. The policy should reflect everything your company actually does, including secondary activities.
- Limits and sub-limits. Especially the per-victim sub-limit in employers' liability, which is often too low.
- Time scope. Whether it covers damage occurring or claims made during the policy period, and what happens before and after.
- Territorial scope. Essential if you export: many policies exclude the United States and Canada.
- Subcontractors. How the policy responds when the damage is caused by a company you have subcontracted.
- Deductibles and exclusions. They should not leave out precisely the most likely claims in your sector.
We defend you with the legal backing of Trebia Abogados
A liability claim can arrive as a letter, a formal notice or a lawsuit. Our claims department, supported by the Group's Legal Department, notifies the insurer in time, coordinates the defence and makes sure the policy responds as agreed.
What clients usually ask us about liability
Is liability insurance compulsory?
It depends on the activity. It is compulsory in some sectors and professions, and in others it is required by professional bodies, public authorities in their contracts or clients themselves. Even when it isn't compulsory, it is the basic cover for any company.
What is the difference between general and professional liability?
General liability covers personal injury and property damage caused to third parties. Professional liability covers the financial loss a client suffers because of an error in the service or advice provided, which general liability does not normally include.
Does it cover injury to my own employees?
Yes, through employers' liability, when the employee or their family claim against the company for a workplace accident. The per-victim sub-limit is worth checking, as it is where policies differ most.
What limit of indemnity do I need?
It depends on the sector, the size of the company, what your contracts require and the worst reasonable scenario for your business. We analyse it with you before proposing a figure.
I export my products. Am I covered outside Spain?
Only if the policy expressly includes it. Many exclude the United States and Canada, where claims can reach much larger amounts. It is a point we always review.
Does it cover fines and contractual penalties?
As a rule, no. Liability insurance covers liability to third parties for damage, not administrative fines or penalties agreed in a contract.
We will prepare a free review of your liability insurance
Tell us who you are and what your company does. One of our specialists will contact you to review your current policy or prepare comparative proposals.
- Comparison across more than 40 insurers
- A review of your current policy, if you have one
- A single point of contact who also supports you with claims
Request your review
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