Self-employed and entrepreneurs know that creating a business entails many responsibilities that must be assumed. However, it is impossible to control everything, especially external adverse incidents, which may lead to third-party claims.
In order not to compromise the future of the company, it is essential to have good insurance protection that provides security and stability to the company.
What are Mandatory Insurance for Companies?
There are a series of insurances that are mandatory in case of setting up a company. Although not always, Civil Liability is usually one of them. It depends, in any case, on the professional activity that is carried out.
And, although it is not mandatory, it is very interesting to have him to deal with possible claims that may occur during the exercise of work.
What all companies with dependent workers are obliged to do is have Occupational Accident insurance, whose coverage and compensation will be determined by the collective agreement, which establishes what to cover in the event of a mishap.
In a generic way, it covers accidents, permanent disability or death of the worker.
In the event that the company has vehicles linked to its activity, these must have, as in the case of private cars, their corresponding Automobile insurance, including industrial vehicles and machinery, such as cranes or forklifts.
And there are specific sectors, such as construction, which, in addition to the above (most autonomous communities require professional Liability insurance when a building is going to be erected to allow the approval of the actions in the Professional Associations),
You must also have Decennial insurance, mandatory for the promoter if it is a new construction or structural reform of housing.
Is Civil Liability Insurance Mandatory?
As we have commented, Civil Liability insurance is only mandatory for some companies and professionals, depending on the economic activity that is carried out.
This insurance is mandatory for the following professionals:
- Health workers working in private clinics
- Lawyers
- Insurance brokers
- Financial intermediaries
- Insolvency administrators
- Elevator maintenance companies, among other professions.
Entrepreneurs who have venues that offer shows or recreational activities, such as cinemas, auditoriums, theaters, circuses, concert halls, gaming establishments, zoos, arcades, leisure and entertainment centers, cyber rooms, sports complexes, must also contract it. , gyms, bowling alleys, supermarkets, restaurants, bars or cafeterias.
Likewise, collective public transport companies, school transport companies, travel agencies, bullfighting promoters and fireworks promoters, among others, must have this type of insurance.
Why does my company need Civil Liability Insurance?
Even in those companies in which it is not mandatory to have civil liability insurance, it is highly recommended to contract it.
Since if it does, it will be the insurer, and not the businessman with his assets, who is in charge of paying the compensation in case of that during the exercise of the professional activity third parties suffer damages and claim for them.
And it is that, business practice is not exempt from risks and civil liability insurance is responsible for covering either material damage.
Such as breaking the air conditioning drain pipe in an office and causing humidity to the premises below; personal injury, such as a customer walking into a machine shop and dropping a heavy tool on his foot; or economic damages.
Such as a fire starting in our business and the company next door cannot open for several days due to the damage caused.
What are the Coverages of this Insurance?
The basic coverages that RC insurance for companies should include also depend a lot on the sector and economic activity, but they mainly cover the following:
- Primary material, personal or patrimonial damages caused to a third party.
- Atmospheric phenomena
- Water damage
- Electrical or electronic failures
- Smoke
- Vandalism
- Vehicle crash or impact of other objects (in companies at street level)
- Expense of transportation of goods
- Objects missing in accidents
- Fire fighting expenses.
Other not so frequent, but also important are the compensation of the gross margin during the stoppage of the company’s activity, the repair of breakdowns, material damage suffered in the transport of the product and legal assistance and criminal defense.
Final Words
It is an insurance that guarantees, mainly, economic tranquility, without diminishing the employer’s assets, since it is the insurer that compensates for the expenses or compensation that derive from the damage due to error, fault or omission caused to third parties.
In addition, it allows for legal defense, essential in the negotiation processes of affected third parties. And it is a requirement that many professionals are asked to apply for public tenders.