Business Insurance in Spain

Navigating the complexities of insuring business risks in Spain can be challenging, especially for international companies. This guide covers essential insurances such as Workers Compensation, Civil Liability, Property Insurance, and Business Interruption Insurance. It also explains how Spain’s natural disaster pool, the Consorcio de Compensación de Seguros, handles risks like floods and wildfires, ensuring businesses are well-informed about their insurance needs.

Introduction

Welcome to ACCOMPANY’s FAQ section. Here, we provide answers to frequently asked questions about insuring risks in Spain. Whether you’re a Dutch entrepreneur active in Spain or considering doing business there, this FAQ offers valuable information about insurance options and requirements.


What You Need to Know

Can you take out insurance from another (EU) country to cover risks in Spain?

Yes, because Spain is a Freedom of Services (FOS) country, you can insure risks in Spain with a policy from a Dutch insurer. The Dutch insurer will pay the Spanish insurance tax. However, opting for a local Spanish policy is often a better choice for the following reasons:

  • The local policy is written based on Spanish rules, legislation, and practices, which may differ from Dutch norms.
  • The coverage may include locally customary terms.
  • Claims handling is based on the Spanish policy, conducted by a Spanish advisor in the Spanish language.
What are the main compulsory insurances for a company in Spain?

An essential compulsory insurance for companies in Spain is the Workers Compensation insurance, also known as “seguro accidentes por convenio” in Spanish. This insurance is mandatory if required by the collective labor agreement (“convenio”) applicable to the company’s activities.

The employer is responsible for the safety and prevention of their employees and must ensure that they can perform their activities under the best possible conditions. Failure to comply with these obligations can result in severe administrative sanctions, with fines potentially exceeding 150,000 euros.

 

Spain has specific natural risks such as floods and wildfires. How is this covered?

Spain has a specific natural disaster pool called Consorcio de Compensación de Seguros. This mechanism compensates for damages if an area is declared a catastrophe. Every policy covering damage to life and property includes a portion that must be paid to be covered by the Consortium. This can only be included through a Spanish policy.

What are the key local insurances for businesses in Spain?

In Spain, businesses typically take out various insurances to protect their activities and assets. Some of the main local insurances for businesses in Spain include:

  • Civil Liability Insurance (Seguro de Responsabilidad Civil): This insurance covers legal liability arising from bodily injury to third parties, property damage, or financial loss caused by the company’s activities or products.
  • Property Insurance (Seguro de Daños): Property insurance protects business premises, equipment, inventory, and other physical assets against hazards such as fire, theft, vandalism, and natural disasters.
  • Business Interruption Insurance (Seguro de Pérdida de Beneficios): This insurance provides financial compensation for lost income and additional expenses resulting from the interruption of business activities caused by covered hazards, such as property damage.
  • Professional Liability Insurance (Seguro de Responsabilidad Civil Profesional): Professional liability insurance protects professionals and businesses against claims of negligence, errors, or omissions in the provision of professional services.
  • Employer’s Liability Insurance (Seguro de Responsabilidad Civil Patronal): Employers in Spain are required to have this insurance to cover their legal liability for workplace accidents, injuries, or illnesses that employees sustain during their employment.
  • Directors and Officers (D&O) Liability Insurance (Seguro de Responsabilidad Civil de Administradores y Directivos): D&O insurance protects directors and officers of companies against personal liability claims arising from decisions they make.

How can I learn more about insuring my business risks in Spain?

For more information about insuring your business risks in Spain, you can download the White Paper at www.internationaalverzekeren.nl or here .

We hope this FAQ has answered your questions. For further inquiries or advice, please feel free to contact one of our advisors.

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The information contained herein is of a general nature, and subject to changes. Applicability to your specific situation should be determined through consultation with our tax or legal advisors.