Professional Liability in Spain

If a customer feels you have acted negligently the threat of litigation will be greatly stressful to the whole business. The costs of which can also be high. When a customer sues your business for dissatisfied service, the liability insurance can help you protect you from such claims.

The insurance will cover you for compensation and the costs of defending yourself. These are the key reasons it is important to have a policy in place that will safeguard your company and the business’s future.

• Court costs and lawyers fees: International and Spanish lawyer fees are fully included, including the administrative costs and expert witness costs. In addition, Spanish court costs and settlement costs are included.

• Worldwide and USA Cover: When the cover is worldwide the jurisdiction is in the country where the claim is made. This is very important for policies that include the USA. There are very few insurance companies that quote for a business that works in the USA. A qualified broker will be able to source the best options if you work for clients based in the USA.

There are many professions and risks that are complicated and require clauses such as an additional insured to be written into the contract.

Again, this is where a broker will be able to communicate with the underwriters to explain the necessary requirements.

• Coverage for Intellectual property rights: Whereby you would unknowingly use a name or logo for example, which was the same or similar to a competitor’s business.

• Damage to property or causing data loss: An example would be that you spill coffee on a client’s laptop causing damage and loss of data.

• If staff were to sue you for injuring themselves on your premises or due to the business’s negligence, the professional liability insurance would come into play.

• Defamation claims can affect your business’s image. This is where your name is affected by the actions of individuals or groups.

The Spanish government is now making it obligatory for the majority of new businesses to have professional liability insurance.

Examples of businesses that need professional liability insurance before they open are financial registered businesses in Spain, “Inmobiliario” or Real Estate businesses, consultants of all types from web designers to marketing consultants.

Lastly other professions that require this type of insurance are medical and iT consultants, assessors, lawyers, gyms and schools.

Any profession or business can consider cover. If you feel you need cover you most likely do, there are numerous key benefits to cover. No matter the type of business it is always best to speak to an insurance professional on what is available to you. I

Public Liability insurance
Public Liability insurance protects you in the event you are sued for claims from customers on your premises. A standard business or commercial insurance policy will include public liability cover as standard.

Directors and officers (D&O) liability insurance
(D&O) insurance protect the personal assets of company directors and officers and their spouses. The cover is provided in the event the directors or spouses are personally sued by employees, vendors, competitors, investors, customers, or other parties. D&O insurance is more costly than professional liability insurance due to the larger scope of cover.