Most companies have no alternative to taking out liability insurance. In every business activity there is the risk of causing accidental material damage or personal injury. In Spain such claims are covered by public liability insurance.

The company is in principle liable, with all its assets, for any claim caused by the business owner or any employee.

The indemnity claims arising from liability claims can threaten the existence of small and medium-sized enterprises. This mainly concerns personal injuries, where the indemnity claim can reach several millions. In such events, the public liability insurance covers the demands put forward and protects the business from financial risks.

• Personal injuries
• Material damages (repair or replacement costs)
• Financial losses resulting from a claim of personal injuries or material damages

Liability insurance covers claims which are caused by you as an entrepreneur or one of your employees to a third party (personal injuries) or to its assets (material damages).

Furthermore, the liability insurance will cover financial loss as a consequence of a valid personal injury or material damage claim. This could be the case for example if there is a loss of income due to personal injury.

The whole staff that acts in the name or by order of your company is insured through the liability insurance. The determining condition is that these persons carry out business activities on behalf of the company.

The liability insurance cover is in generally limited to the territory of Spain (including the Balearic and Canary Islands).

When choosing the insurance sum for the liability insurance policy, the biggest possible claim should be taken as your benchmark. Especially in the case of personal injury, a sufficient insurance sum is crucial.

Depending on the type of claim, the indemnity amount can be very high. Therefore, it is important to find an adequate insurance limit, when taking out the insurance policy.