During the development of their professional activity, companies and freelancers may carry out actions that, involuntarily, result in damage to other people or property of others.
To protect this third party, there is Exploitation Civil Liability insurance, which looks after the employer’s assets, indemnifying the person affected.
The Civil Liability of Exploitation is the obligation that a businessman has to repair the damages that he may cause to third parties in his property or personally by the exercise of his professional activity.
RC Exploitation Definition
The RC Exploitation insurance allows the insurer to be in charge of indemnifying the affected person, instead of the employer with his assets.
Thus, it is responsible for paying an amount for damages caused by negligence or fault (by involuntary actions or omissions) caused to a third party by its insured or the company it owns.
It includes both bodily damage (injuries, illnesses or deaths, including those caused to animals), as well as material damage (deterioration of property belonging to others.
Such as a car, an object or a machine, or nearby facilities), patrimonial damage (when the injuries or damages materials result in significant monetary losses to third parties) and even moral damages.
What does Exploitation Civil Liability Cover?
The scope of action of the Exploitation RC is broad, so the coverage established in the policy protects against damages produced in numerous situations:
- Works of the company that are carried out in its facilities.
- Work performed by the employer and his employees, established within his professional mission.
- Works that have been commissioned by third parties and that are going to be carried out outside the company.
- Ownership, use and maintenance of machinery, equipment and other utensils that belong to the company, whether or not they are inside the facilities.
- The entire process of transporting goods: treatment, loading, transfer, unloading and storage.
- Surveillance and security tasks associated with the company’s activity.
- Certain business activities of a commercial nature, such as the placement of advertising elements inside and outside the facilities; access to the company by external personnel, such as customers, suppliers or visitors; the attendance of workers at events or training courses; or business trips.
- Other risks not contemplated above, but that result from another action or situation derived directly from the business activity, with the exceptions and limitations established in each policy.
- In what cases is it necessary to have these coverages?
- The Exploitation RC is fundamental in any type of economic activity in which the professional interacts with third parties (clients, suppliers, employees…) and totally recommendable in the case of having facilities to develop their business, since it protects against damages produced while the works or works are in progress and have not finished.
In addition, this policy is not only responsible for the payment of compensation, but also usually covers the legal defense of the employer and the payment of judicial and extrajudicial costs and expenses.
Which can sometimes be large, so that, in the event of Not having this type of coverage could mean a significant decrease in the employer’s assets and even lead to the closure of work activity.
Difference between Civil Liability of Exploitation and Professional
Sometimes there is confusion to differentiate Exploitation Civil Liability from Professional Civil Liability, since in both cases they are produced by actions and omissions in the course of work activities that cause material or personal damage to third parties.
In the case of the RC of Exploitation, property damages derived from the above are also included (for example, that a person drops a heavy object in a store.
Because it is incorrectly placed, that causes a fracture that prevents him from going to a professional sporting event for which he was going to obtain financial returns).
However, the Professional RC contemplates property damage regardless of whether they are caused by prior material or personal damage.
An obvious case is when a trucker sends his traffic tickets to an agency to process them and they do so with a delay and, therefore, the amount to be paid for the penalties is increased.
Another important difference is that the Professional CL not only protects third parties, but also applies to the activity itself, covering, for example, the company’s workers due to negligence, which is outside the protection of the CL of Exploitation.
Examples of Exploitation RC
There are many practical examples in which the Exploitation RC protects the employer, depending on the activity carried out by him. Some of them are:
- A client who slips inside the offices because the floor has just been mopped and injures himself or breaks his glasses.
- A hospital bed that is in poor condition and causes a patient to fall, aggravating his illness.
- A water leak in the workplace that causes damage to the property located under our premises.
- A badly placed sign on the outside of the store that comes off and causes damage to a car located below it.