Business Insurance in Spain – 2026 Guide for Expats, Self-Employed & Small Businesses
Running a business in Spain as an expat is exciting – but it also comes with risks. A single compensation claim, uninsured fire, or cyber incident can wipe out years of work. This guide explains what business insurance in Spain covers and how to choose the right protection.
Quick Summary
Business insurance in Spain protects your company, assets and liability towards clients, employees and third parties. The main types include public liability, professional indemnity, commercial property, business interruption, employer's liability and cyber insurance.
- Public liability covers injury or property damage to third parties
- Professional indemnity covers financial losses from your professional errors
- Commercial property/multirrisk covers premises, contents and equipment
- Business interruption covers lost income after a covered event
- Costs vary from a few hundred to over €1,000/year depending on activity and risk
What Is Business Insurance in Spain?
Business insurance in Spain is a group of policies that protect your company, your assets and your liability towards clients, employees and third parties.
Depending on the type of company, it can cover:
- Damage to your premises, stock and equipment
- Claims from clients because of professional mistakes
- Injuries or damage caused to third parties
- Employee accidents and employer responsibilities
- Loss of income after a fire, flood or other covered event
For expats, the most important point is that Spanish law, contracts and local practice may require certain covers – even if similar insurance was only "optional" in your home country.
Who Needs Business Insurance in Spain?
You should consider business insurance if you are:
Self-Employed (Autónomo)
Working with clients in consulting, services, trades or professional advice
Small Business Owner
With an office, shop, bar, restaurant or warehouse
Employer
With employees in Spain needing workplace cover
Foreign Company
Opening a branch or subsidiary in Spain
Even if you run a small online business from a home office, you can still be sued for professional errors, copyright problems or data issues. In many cases, landlords, clients or public authorities will ask for proof of cover.
Main Types of Business Insurance in Spain
1. Public Liability Insurance (Responsabilidad Civil General)
Protects you if your business causes injury or property damage to third parties.
Examples:
- A client slips in your office or shop and breaks an arm
- Your employee damages a neighbouring property during work
- A customer's belongings get damaged on your premises
Essential for: Shops, bars, cafés, restaurants, tradespeople, construction companies, and any business with regular visits from clients or suppliers. In some sectors, public liability insurance is mandatory.
2. Professional Indemnity Insurance (Responsabilidad Civil Profesional)
Covers financial loss suffered by a client because of your professional error, negligence or incorrect advice.
Typical professions:
- Consultants, advisors, coaches
- IT, marketing, design and engineering professionals
- Lawyers, accountants, architects and other regulated professions
For expats offering services in Spain, professional indemnity insurance is often the most important protection. See our PI vs PL comparison guide for details.
3. Commercial Property Insurance (Seguro de Comercio / Multirriesgo)
Covers your premises, contents and equipment against risks such as fire, explosion, smoke, storm, flood, water damage, vandalism, theft or attempted burglary.
A typical business multirisk policy can include:
- Building (if you own it)
- Contents, stock and machinery
- Glass, signs and outdoor elements
- Money on the premises or in transit
If you rent your premises, the landlord may require a minimum cover in the lease contract.
4. Business Interruption Insurance (Pérdida de Beneficios)
If a fire or other covered event forces your business to close, business interruption insurance compensates for:
- Lost income
- Ongoing fixed costs (rent, salaries, utilities)
- Extra expenses to continue operating (temporary premises, equipment rental)
Especially useful for hospitality, retail and production businesses.
5. Employers' Liability & Employee Accident Cover
If you employ staff in Spain, you have legal obligations towards them. Business insurance can include:
- Employers' liability – covers compensation claims from employees
- Collective accident insurance – required in some collective bargaining agreements (convenios)
- Optional health or accident benefits to attract and retain talent
Your gestor or labour advisor can confirm which covers are mandatory for your sector and region.
6. Cyber & Data Protection Insurance
More and more Spanish businesses work online, store customer data and take card payments. Cyber insurance can help with:
- Data breaches and cyber attacks
- Ransomware and system interruption
- Legal and notification costs
- Reputation and PR support after an incident
Even a simple online shop or booking system can benefit from basic cyber cover.
Industry-Specific Insurance Requirements
Different business sectors in Spain have varying insurance requirements. Some are legally mandated, others are industry standard or required by clients and landlords.
🏗️ Construction & Trades
- Public liability: Often mandatory, minimum €300,000–€600,000
- Decennial liability: Required for new construction projects
- Tools & equipment: Highly recommended
- Subcontractor requirements often stricter
💼 Consulting & Professional Services
- Professional indemnity: Essential, often €100,000+
- Cyber insurance: Increasingly required by clients
- Public liability: If meeting clients in person
- Regulated professions have colegio requirements
🍽️ Hospitality (Bars, Restaurants, Cafés)
- Public liability: Mandatory, typically €300,000+
- Premises insurance: Contents, fire, water damage
- Business interruption: Highly recommended
- Food liability: Usually included in RC
🛒 Retail & E-commerce
- Product liability: Essential for physical goods
- Public liability: If customers visit premises
- Stock insurance: Theft, fire, damage
- Cyber insurance: For online payment handling
💡 Tip: Many business landlords, shopping centres, and corporate clients require proof of specific insurance covers as a condition of contract. Always check these requirements before signing any agreement.
Business Insurance Claims Process
If something goes wrong, knowing how to handle a claim efficiently can make a significant difference in the outcome.
Immediate Response
Secure the scene, prevent further damage, but don't admit liability to anyone.
Notify Immediately
Contact your broker or insurer within 24–72 hours. Late notification can affect coverage.
Document Everything
Photos, videos, witness details, receipts, correspondence. Create a comprehensive record.
Follow Up
Stay in contact with your insurer. Provide additional information promptly when requested.
⚠️ Common Claim Mistakes to Avoid
- • Admitting fault: Never admit liability before consulting your insurer
- • Late notification: Report incidents immediately, even if unsure about claiming
- • Poor documentation: Take photos and keep records from day one
- • Disposing of evidence: Keep damaged items until the claim is resolved
- • Accepting settlements: Don't agree to anything without insurer approval
Hidden Costs & Fees to Consider
Beyond the annual premium, there are several costs that can affect your total insurance expenditure.
| Cost Type | Typical Amount | How to Manage |
|---|---|---|
| Deductibles (Franquicia) | €150–€1,000 per claim | Choose higher deductibles for lower premiums if cash flow allows |
| Policy Administration Fees | €20–€50/year | Often negotiable or included in premium |
| Mid-term Changes | €25–€75 per change | Bundle changes together at renewal |
| Cancellation Fees | Pro-rata + admin fee | Wait until renewal to switch providers |
| Claim Excess Increases | 10–25% premium increase | Consider self-insuring small losses |
Choosing the Right Coverage: Decision Guide
Use this framework to determine which business insurance covers you need:
1Do you interact with clients or the public?
Yes → Public Liability Insurance
Covers injury/damage to third parties
No → May not be essential
But still recommended for protection
2Do you provide advice, design, or professional services?
Yes → Professional Indemnity
Covers financial loss from errors
No → Probably not needed
Focus on other covers
3Do you have physical premises, equipment, or stock?
Yes → Commercial Property Insurance
Covers premises, contents, equipment
No (home office only) → Check home policy
May need business endorsement
4Do you employ staff in Spain?
Yes → Employers' Liability + Convenio Cover
Check sector-specific requirements
No → Not required
Solo autónomo or SL without employees
Business Insurance in Spain for Expats & Foreign Companies
As an expat business owner, you face some extra challenges:
Policies and conditions are in Spanish
Legal requirements can differ from your home country
You may not be familiar with Spanish liability culture
Contract requirements may demand specific minimum limits
Practical Tips for Foreign Entrepreneurs
Clarify your legal form
Autónomo, SL (limited company), branch, subsidiary – each has different responsibilities.
Check contractual requirements
Clients, landlords and partners may demand specific minimum limits of indemnity.
Adapt cover to your real risks
A freelancer working from home has different needs than a restaurant or warehouse.
Work with a broker who understands expats
They can explain terms in English and help with claims.
How Much Does Business Insurance in Spain Cost?
Premiums depend on many factors:
- Type of activity and risk level
- Turnover and number of employees
- Location and size of premises
- Claims history and safety measures
- Selected limits of indemnity and deductibles
Rough Price Indications
The best way to find out is to request tailored quotes for your specific business.
How to Choose the Right Business Insurance in Spain
Step 1Map Your Risks
List your main activities and ask:
- Could a client lose money because of my advice or service?
- Could anyone be injured on my premises or during my work?
- What happens if my office, shop or warehouse is unusable for months?
Step 2Check Legal and Contractual Obligations
- Does your professional association, colegio or convenio require specific insurance?
- Does your lease demand certain cover for the premises?
- Do any client contracts specify minimum limits?
Step 3Compare Quotes – Not Just Prices
Look at:
- Covered risks and main exclusions
- Limits of indemnity per claim and per year
- Deductibles (the part you pay yourself)
- Claims handling quality and available languages
Choosing the cheapest policy can be expensive later if a key risk is excluded.
Step 4Review Your Insurance Every Year
Update your policies when you grow or change your activities, hire staff, or open new premises. Keeping your business insurance up to date ensures you are properly protected when something happens.
Final Thoughts
Choosing the right business insurance in Spain is one of the most important decisions you make as an expat entrepreneur. The correct combination of public liability, professional indemnity, property and other covers can protect your income, your assets and your peace of mind.
Take time to understand your risks, compare policies carefully and, if needed, ask for specialist help. A well-designed insurance program lets you focus on what really matters: growing your business in Spain.
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German, Swedish
Frequently asked questions
Still have questions? Check these answers or get in touch.
Do I need business insurance as a freelancer (autónomo) in Spain?
If you work with clients or the public, business insurance is strongly recommended. Many autónomos need at least public liability and professional indemnity, depending on their activity.
Is business insurance mandatory in Spain?
For some regulated professions and sectors, certain covers are legally required or required by professional bodies or collective agreements. Even when not mandatory, it is often demanded in contracts.
Can I pay Spanish business insurance from a foreign company account?
In many cases yes, but claims are usually handled under Spanish law and in Spanish. It's important that the policyholder and insured activity are correctly identified in Spain.
Can I get business insurance in Spain if my company is registered abroad?
Often you can, especially if you have a branch, permanent establishment, employees or premises in Spain. Insurers will want clear information about your structure and activities.
What's the difference between public liability and professional indemnity?
Public liability covers injury or property damage to third parties (e.g., a customer slips in your shop). Professional indemnity covers financial losses caused by your professional advice or services (e.g., an error in your consulting work).
How much does business insurance cost in Spain?
Costs vary widely depending on your activity, turnover, number of employees, and cover limits. A small autónomo might pay €200–€500/year for basic liability, while larger businesses with multiple covers can pay several thousand euros.
Can I get business insurance if I work from home?
Yes, but you should inform your insurer that you work from home. Your standard home insurance typically doesn't cover business activities. You may need a specific policy or endorsement.
Does business insurance cover cyber attacks?
Not automatically. Cyber insurance is usually a separate policy or add-on. It covers data breaches, ransomware, business interruption from IT failures, and related legal costs.
What happens if I have a claim?
Contact your broker or insurer immediately. Don't admit liability. Gather evidence and documentation. The insurer will investigate and respond according to your policy terms. We guide you through the entire process.
How quickly can business insurance start?
For straightforward activities with complete information, cover can often start within 1-2 days. Higher-risk sectors or complex structures may require underwriting review and take longer.
What are the common exclusions in business insurance policies?
Common exclusions include intentional acts, claims arising from illegal activities, wear and tear, known defects, fines and penalties, and claims from contractual disputes rather than negligence.
Do I need separate insurance for each business activity?
Not necessarily, but all activities must be declared to your insurer. A combined policy can cover multiple activities, but the premium will reflect the total risk profile of all your business operations.
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