In which cases is it recommended that the self-employed have civil liability insurance?

February 08 , 2023 // Specialty : Professional Liability: lawyers, doctors and other professionals

Published in Telemadríd

Civil Liability insurance is not mandatory for the self-employed except in specific cases that mark their activity. However, it is the best weapon to safeguard the professional's assets, as explained to us by Juan Antonio Marín, president of FECOR (Federation of Professional Organizations of Insurance Brokers and Brokers of Spain).

Article 1902 of the civil code expressly says: "Whoever by action and omission causes damage to another, intervening fault or negligence is obliged to repair the damage caused." And that is precisely what civil liability insurance covers.

An insurance that is mandatory for architects, surveyors and insurance brokers, the latter have a special one known as professional to be safeguarded in case of mistaken advice to a client. Surely they also usually have tax or labor advisors, although it is not mandatory.

All those companies to which other larger companies subcontract are also required to have it, since they require it to be covered. And also those professionals who opt for certain contests or awards.

In Spain, it is increasingly common for owners of open farms, meaning: shops, restaurants, bars, etc. take out this type of insurance since in the event of an accident in it they can hold you responsible and demand compensation.

Precisely, civil liability insurance is the one that covers you in the event that you cause damage to third parties and you have the obligation to repair it immediately and thus avoid covering it with your assets.

When you are held responsible for damage, you must notify your insurer in writing, so that it sees the responsibilities and later, tries to reach an amicable agreement or go to court, in case there is no clarity in the responsibility or request excessive compensation, among other causes.