Setting up a business is not always a walk in the park. If you want to start one in Spain, you will need some insurance in order to reduce potential risks.
There are three mandatory business insurances according to Spanish law. However not all companies are the same, so supplementary insurance mat vary depending on the sector.
Compulsory Insurance – Whether you are a professional with major responsibilities, professional machines, contract workers or company vehicles.
Civil liability insurance (Seguro de Responsabilidad Civil) It is crucial for the development of any enterprise activity, as it safeguards any civil claim that may affect the business. This is not mandatory for all businesses and companies, as it all depends on the professional activity. For example, it is compulsory for lawyers, insurance brokers, health care professionals, financial intermediaries or insolvency administrators. It is also mandatory for bars, restaurants, clubs and other leisure establishments from zoos to cinemas, sports complex and gyms amongst others.
There are two types of civil liability insurance.
General which covers both personal and material damages to third parties when they took place during professional practise or after consuming or purchasing any goods in a poor state. Basically, it protects you for any damage caused by goods sold by the policyholders.
Professional is professional funny enough, where work activity may cause damage to others such as lawyers, architects or private doctors. Insurance companies will ask for either academic certification or proof of registration for a professional association, as they would need to be 100% satisfied that the policyholder can carry out its professional activity.
Employees insurance (Seguro a los trabajadores) covers work accidents (temporary disabilities, permanent disability or death) It is regulated by Spanish law however collective agreements set the type of policy. So, they set the insurance premium varies depending on compensation, branch of industry and number of employees.
Company vehicle insurance (Seguro a los vehiculos de empresa) is needed for all vehicles, whether it’s for cars or for heavy machinery. Insurance costs will vary depending on the branch of industry, drivers’ circumstances, type of vehicle and type of coverage.
Supplementary insurance isn’t compulsory, but some may be required to begin business activities which need special coverage.
The most common are fully comprehensive insurance (Seguro multirriesgo) which is specially designed for small businesses and self-employed workers. It covers damages the place of work may suffer. Insurance costs depend on the type of business and the owners needs, from small damages to theft, flood or fires.
Surety insurance (Seguro de Caucion o Decenal) is compulsory for all self-employed workers or companies to submit a guarantee to the public administration when setting up a business, It guarantees compliance of the legal and contractual obligations assumed by the company. The advantages to this are that it is a less economic cost than bank guarantees and it is not reflected on CIRBE (Risk Information Center of the Banco de Espana) in case of debts with a bank entity and it does not imply the immobilisation of funds in most cases.
Environmental responsibility insurance (Seduro de Responsabildad Medioambiental) is a policy which takes responsibility for accidents or unplanned releases that endanger the company’s viability against environmental risks. It especially affects dry cleaners, industrial plants, petrol stations and recycling centres.
Looking for business insurance may be a daunting prospect. Many major companies offer telephone advice to help find the best insurance which meets your needs instead of putting policy details online. A few popular ones to try are Allianz Seguros, Generali Seguros, Zurich, AXA, Caser Seguros and Mapfre.