Business & Liability Insurance Glossary Spain
Essential Spanish business and liability insurance terms explained in plain English. Understand your policy, meet contract requirements, and protect your business with confidence.
Policy Types
(4 terms)Seguro de responsabilidad civil
Public liability insurance
Seguro de responsabilidad civil (public liability insurance) protects your business against claims from third parties who suffer injury or property damage due to your business activities. This covers compensation, legal costs and defence expenses up to the policy limit.
Why it matters for expats:
Essential for any business with customer-facing activities, premises open to the public, or work at client sites. Many landlords, shopping centres and corporate clients require proof of RC cover before you can operate.
Seguro de responsabilidad civil profesional
Professional indemnity insurance
Professional indemnity insurance (seguro de responsabilidad civil profesional) covers financial losses caused by your professional advice, services or errors. Unlike public liability, it covers pure economic loss—not physical injury or property damage.
Why it matters for expats:
Mandatory for many regulated professions in Spain (architects, lawyers, doctors, gestoría). Even if not required, it's essential for consultants, designers, IT professionals and anyone whose advice could cause client losses.
Seguro de responsabilidad civil general
General liability insurance
General liability insurance (seguro de responsabilidad civil general) is a broad category covering third-party claims for injury or property damage. In Spain, this term often refers to the combined public and products liability cover within a business policy.
Why it matters for expats:
When Spanish insurers refer to 'RC general', they typically mean the core liability section of a business policy. Understand what's included—some policies separate premises liability, products liability and employer's liability.
Seguro multirriesgo empresarial
Combined business insurance
A multirriesgo empresarial (combined business insurance) bundles multiple covers into one policy: property, contents, stock, business interruption, liability and more. It's the Spanish equivalent of a UK commercial combined policy.
Why it matters for expats:
For most small businesses in Spain, a multirriesgo is the most practical choice—one policy, one renewal date, coordinated covers. Ask what's included and what limits apply to each section.
Financial Terms
(4 terms)Prima empresarial
Business premium
The prima empresarial is the amount you pay for your business insurance policy. Premiums are usually quoted annually in Spain, with options for monthly or bi-annual payments. Paying annually often attracts a discount.
Why it matters for expats:
Business insurance premiums depend on your sector, turnover, premises size, claims history and cover levels. We help you understand what drives the price so you can make informed choices.
Franquicia
Excess or deductible
The franquicia (excess/deductible) is the amount you pay out of pocket before the insurer pays a claim. Higher excesses reduce premiums but increase your risk if you need to claim.
Why it matters for expats:
In business policies, different sections may have different excesses—one for property, another for liability. Check each excess and consider whether you can afford it in a worst-case scenario.
Límite de indemnización
Indemnity limit
The límite de indemnización is the maximum amount the insurer will pay for a claim or series of claims. For liability cover, this is often expressed 'per claim' and 'in the aggregate' (total per policy year).
Why it matters for expats:
Landlords, contracts and tenders often specify minimum indemnity limits (e.g. €300,000 or €600,000). Make sure your policy meets these requirements—under-insuring can invalidate contracts.
Capital asegurado
Sum insured
Capital asegurado refers to the sum insured for property, contents or stock—the maximum the insurer will pay if those items are damaged or destroyed. It should reflect the replacement or reinstatement cost.
Why it matters for expats:
Underinsurance is common. If your capital asegurado is too low, the insurer may apply 'proportional reduction' (infraseguro) and only pay a fraction of your claim. Review values annually.
Coverage Types
(5 terms)Responsabilidad civil patronal
Employer's liability
Responsabilidad civil patronal (employer's liability) covers claims from employees who are injured at work due to the employer's negligence. In Spain, mandatory social security provides basic cover, but RC patronal extends protection beyond that.
Why it matters for expats:
If you employ staff—even part-time—consider this cover. While Spain's social security system handles most work accidents, gaps remain, and civil claims against employers are possible.
Daños materiales
Property damage
Daños materiales covers physical damage to premises, contents, stock and equipment from insured perils—fire, water, theft, storm, etc. This is the property section of a business policy.
Why it matters for expats:
Make sure your policy covers the perils relevant to your location (flooding, subsidence) and your activity (fire risk for restaurants, water damage for spas). Read the exclusions carefully.
Lucro cesante
Business interruption
Lucro cesante (business interruption) covers lost income and ongoing expenses if an insured event—like a fire or flood—forces you to close temporarily. It pays out while your business recovers.
Why it matters for expats:
Many small businesses underestimate how long recovery takes. Without lucro cesante, you may cover repairs but still face rent, wages and loan repayments with no income. Set an adequate indemnity period (often 12 months).
Responsabilidad por productos
Product liability
Responsabilidad por productos covers claims arising from injury or damage caused by products you manufacture, sell or supply. It protects against defective products reaching customers.
Why it matters for expats:
If you sell physical goods—even small-batch food, crafts or imported items—product liability is important. EU product safety laws apply, and claims can be significant if a product causes harm.
Defensa jurídica
Legal expenses / defence
Defensa jurídica covers legal costs—lawyer fees, court expenses, expert witnesses—when defending claims or pursuing recovery against third parties. Often included in liability policies.
Why it matters for expats:
Legal proceedings in Spain can be slow and expensive. This cover is especially valuable if you need Spanish-speaking lawyers and translation. Check limits—some policies cap legal expenses.
Claims & Process
(5 terms)Siniestro empresarial
Business claim / incident
A siniestro empresarial is any insured incident affecting your business—property damage, liability claim, theft, interruption. 'Declarar un siniestro' means to report a claim to your insurer.
Why it matters for expats:
Report incidents quickly—most policies require notification within a set period (often 7 days). Document everything: photos, invoices, police reports. We can help you through the claims process.
Reclamación
Claim (formal request)
Reclamación is the formal process of claiming compensation—submitting documentation, cooperating with assessors, and following up. It covers both claims you make and claims made against you.
Why it matters for expats:
The claims process can feel bureaucratic. Having an English-speaking broker means support navigating Spanish insurance procedures, ensuring proper documentation and following up on your behalf.
Parte de accidente
Accident report form
The parte de accidente is a standardised form to document incidents—property damage, injuries or third-party claims. It captures what happened, who was involved and any witnesses.
Why it matters for expats:
Complete accident reports promptly and accurately. They form the basis of your claim and any defence. Take photos at the scene and keep copies of everything you submit.
Dictamen pericial
Expert assessment / survey
A dictamen pericial is the report produced by a perito (assessor) appointed to evaluate damage, investigate causes and estimate costs. Insurers rely on this to settle claims.
Why it matters for expats:
If you disagree with the perito's assessment, you can request a second opinion or appoint your own expert. Keep your own photos, invoices and estimates as evidence.
Perito
Insurance assessor / surveyor
A perito is a qualified assessor appointed by the insurer to investigate claims—inspecting damage, verifying losses and estimating costs. Their report (dictamen) influences claim settlements.
Why it matters for expats:
Cooperate with the perito but know your rights. Keep your own evidence (photos, quotes). If you disagree with their assessment, you can request a review or appoint your own expert.
People & Roles
(4 terms)Autónomo
Self-employed / freelancer
An autónomo is a self-employed individual registered with Spain's social security system. Autónomos run their own businesses—from consultants and designers to tradespeople and shop owners.
Why it matters for expats:
Many insurers have specific products for autónomos. You don't need to be a large company to get proper liability cover—policies exist for one-person businesses with modest turnover.
Tomador
Policyholder
The tomador is the person or entity that takes out and pays for the insurance policy. For a business, this is usually the company or the autónomo. The tomador is responsible for premium payments.
Why it matters for expats:
Make sure the tomador matches your legal business structure—sole trader (autónomo), SL (limited company), or other. Mismatches can cause problems with claims.
Asegurado
Insured party
The asegurado is the party whose interests are protected by the policy—often the business itself, its employees (for certain covers), and sometimes directors or partners.
Why it matters for expats:
Check who is covered. Some policies extend to employees, subcontractors or directors. Others only cover the named business. Extensions may cost extra.
Tercero perjudicado
Injured third party
The tercero perjudicado is the third party who suffers injury or loss—the person making a claim against your business. Liability insurance protects you against claims from terceros.
Why it matters for expats:
In liability claims, the injured party often deals directly with your insurer. Understanding this helps you manage expectations and communicate effectively during a claim.
Documents
(4 terms)Póliza empresarial
Business policy document
The póliza empresarial is your business insurance policy document—a legal contract detailing covers, limits, exclusions, conditions and your obligations. It's the master reference for what you're insured for.
Why it matters for expats:
Read your póliza—especially the exclusions and conditions. If something isn't clear, ask us. The policy wording determines whether a claim is paid.
Certificado de seguro
Certificate of insurance
A certificado de seguro is a summary document confirming you have valid insurance. Landlords, clients and regulatory bodies often request certificates as proof of cover.
Why it matters for expats:
We can provide certificates quickly when you need to prove your insurance to a landlord, client or authority. Keep copies accessible—you may be asked at short notice.
Carta de renovación
Renewal letter
The carta de renovación is the letter your insurer sends before your policy expires, confirming renewal terms, any changes to premium or cover, and the new policy period.
Why it matters for expats:
Review renewal letters carefully. Premiums can increase, terms can change. It's the right moment to reassess your cover needs and compare options before auto-renewing.
Declaración de actividad
Activity declaration
The declaración de actividad describes your business activities to the insurer—what you do, how you operate, your typical clients. Accurate declaration is essential for valid cover.
Why it matters for expats:
If your declared activity doesn't match reality, claims can be denied. Tell the insurer exactly what you do—including side activities. If your business changes, update your declaration.
Related guides
Professional Indemnity vs Public Liability
Understand the key differences and when you need each type of cover.
Read guidePublic Liability for Autónomos
Essential guide to liability cover for self-employed professionals in Spain.
Read guideBusiness Insurance Broker Spain
How an English-speaking broker helps your business get the right cover.
Read guideReady to get business insurance in Spain?
Now that you understand the terminology, let us find you the right coverage. We explain everything in English and handle the Spanish paperwork.
Frequently asked questions
Why are business insurance terms different in Spain?
Spain has its own insurance system and terminology. While concepts are similar to UK/EU insurance, the Spanish terms (like responsabilidad civil, lucro cesante, franquicia) are used in all policies and communications. Understanding these terms helps you choose the right coverage and handle claims effectively.
What's the difference between responsabilidad civil and professional indemnity?
Responsabilidad civil (public liability) covers injury or property damage caused by your business activities. Responsabilidad civil profesional (professional indemnity) covers financial losses caused by your professional advice or services. Many businesses need both.
Do I need business insurance as an autónomo?
It depends on your activity. Many autónomos need public liability if they work at client sites, have premises, or interact with the public. Regulated professions often require professional indemnity. Even if not mandatory, it protects your personal assets from claims.
What does multirriesgo empresarial include?
A multirriesgo (combined) policy typically bundles property cover, contents, stock, business interruption, and liability into one policy. Exact covers and limits vary—always check what's included and what limits apply to each section.
How do I prove my insurance to a landlord or client?
Request a certificado de seguro (certificate of insurance) from your insurer or broker. This document confirms your cover, limits and validity period. We can provide certificates quickly when you need them.