PI vs Public Liability: Which Insurance Do You Need in Spain?
Clear, side-by-side comparison of PI vs PL insurance in Spain—who needs which, what's covered, typical limits, and how to prove cover to clients.
Quick Answer (TL;DR)
Public Liability covers bodily injury or property damage you cause to third parties, while Professional Indemnity covers financial loss due to your professional advice or services.
- Public Liability (PL) covers bodily injury or property damage you or your business cause to third parties during your operations or at your premises.
- Professional Indemnity (PI) covers financial loss due to your professional advice, design, or service (negligence, errors, omissions).
- Many businesses need both: PL for on-site incidents, PI for advice-related losses.
- Some sectors (healthcare, legal, finance, engineering) expect PI contractually.
- Landlords/venues often ask for PL limits before you can trade or exhibit.
Quick Answer (TL;DR)
- Public Liability (PL) covers bodily injury or property damage you or your business cause to third parties during your operations or at your premises.
- Professional Indemnity (PI) covers financial loss due to your professional advice, design, or service (negligence, errors, omissions).
- Many businesses need both: PL for on-site incidents, PI for advice-related losses.
- Some sectors (healthcare, legal, finance, engineering) expect PI contractually.
- Landlords/venues often ask for PL limits before you can trade or exhibit.
Introduction: Why This Confuses So Many Businesses
Spain uses familiar EU insurance concepts, but terminology and contract requirements vary by sector and municipality. Expats launching as autónomos or forming an SL often assume "business insurance" is one product. In practice, PL and PI protect different risk types, and contracts frequently name them separately—with specific limits and proof-of-cover clauses. Read our complete business insurance guide for a full overview of coverage options available to autónomos and SMEs.
What Each Policy Really Covers
Public Liability (Responsabilidad Civil de Explotación)
Protects against: Injury or property damage to third parties during your day-to-day operations.
Typical scenarios:
- A client slips in your office and is injured.
- Your technician drops equipment, damaging a customer's floor.
- Your stand at a fair triggers an accident (e.g., falling banner injures someone).
Often required by: Landlords, co-working spaces, municipalities for event permits, shopping centers, and some B2B contracts.
Professional Indemnity (Responsabilidad Civil Profesional)
Protects against: Financial loss arising from negligent advice/design/service—even if no one was physically injured.
Typical scenarios:
- Consultant's advice leads to client revenue loss.
- Architect/engineer error causes cost overruns or rework.
- Marketing/IT agency mistakes misconfigure ads or leak data (contractual damages).
Often required by: Regulated professions (legal, medical, financial, engineering), agencies, SaaS/IT providers, and corporate clients via contract clauses.
Key Differences (At a Glance)
| Aspect | Public Liability (PL) | Professional Indemnity (PI) |
|---|---|---|
| Trigger | Physical injury/damage from your operations | Economic loss due to professional error |
| Policy Basis | Usually occurrence-based | Usually claims-made (claim must be made during active policy) |
| Proof of Cover | Frequently requested by landlords/venues | Frequently requested by clients and framework agreements |
| Typical Limits | €300k–€1m for small businesses; higher for public events | €150k–€1m+, depending on project size and sector |
Typical Costs & Limit Selection (2026)
Pricing varies by activity, turnover, claims history, location, and staff count.
Public Liability (autónomo/SME)
€120–€450/yr
At €300k–€600k limits; retail/events may be higher
Professional Indemnity (consultants/agencies/engineers)
€250–€900/yr
At €150k–€500k limits; regulated or high-stakes projects can exceed €1,200–€2,500/yr
Combined packages: Many brokers bundle PL + PI for multi-role businesses.
Choosing limits:
- Check contractual requirements first
- Consider largest single engagement exposure
- In events/venues, verify minimum PL thresholds (often €600k–€1m)
Real-World Examples (Which Policy Responds?)
Scenario: Client falls in your studio (broken wrist)
→ PL
Scenario: You advise a tax structure; client is fined
→ PI (if advice negligence alleged)
Scenario: Your team scratches marble lobby during install
→ PL
Scenario: Ad campaign error burns €20k budget
→ PI (professional service error)
Scenario: Exhibit banner injures a visitor
→ PL
Scenario: Software misconfiguration causes client downtime
→ PI (economic loss)
How to Get Covered Properly (Step-by-Step)
Map your exposures
Do you have premises/footfall (PL)? Do you sell advice/design/config (PI)? Any events or international clients?
Gather documents
CIF/NIE, activity description (IAE code), turnover, client contracts with required limits, and any past claims.
We compare quotes
We'll align PL and PI limits to your contracts, and clarify retroactive and territorial scopes.
Bind and prove compliance
You'll receive certificates in English/Spanish to share with landlords and clients; add run-off cover if needed.
Common Mistakes to Avoid
Relying on PL when you sell advice
Not enough; get PI to cover professional service errors.
Forgetting retroactive cover when switching PI insurers
Leaves gaps for past work—keep prior policy documents.
Not telling your broker about new contracts with higher limits
You may be underinsured without realizing it.
Assuming international work is included
Check territorial/jurisdiction clauses for work with overseas clients.
Letting PI lapse when pausing trading
Consider run-off cover to protect against claims from past services.
Getting Your Business Insurance Right
Whether you need PL, PI, or both, we'll help you navigate Spain's business insurance landscape. Share your activity, contracts, and turnover, and we'll match PL + PI to your real exposure—so you tick every compliance box and avoid costly gaps.
Get Business Insurance QuoteExpert 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 really need both PL and PI?
If you see clients in person (or work at third-party sites) and sell advice/design/services, you probably do. They address different risks and are frequently required in separate clauses.
Is PI always claims-made?
In Spain it's typically claims-made. That means the policy must be active when the claim is made, not only when the work was performed. Keep an eye on retroactive dates and run-off on closure.
What limits should I choose?
Start with contractual minimums; then assess your largest single project exposure. Many autónomos begin at €300k–€600k PL and €150k–€500k PI, scaling as contracts grow.
Are legal defense costs included?
Generally yes, within limits—but structures differ by insurer. We'll walk you through defense inside vs. outside the limit and any sub-limits.
I sometimes run pop-up events—does PL cover those?
Often yes, but notify your broker; venues may require specific certificates and higher PL limits.
I work remotely for clients abroad—am I covered?
Not always. Territorial/jurisdiction clauses matter. Tell us where your clients are based so we place internationally valid PI when needed.
Can I get a combined policy?
Yes—many markets bundle PL + PI. We'll propose either a bundle or two coordinated policies depending on price and wording.
What about employer's liability?
Separate topic—if you hire staff, you may need additional Employer's Liability/Accident cover. We'll advise based on headcount and roles.
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Share your activity and contracts, and we'll match PL + PI to your real exposure—so you tick every compliance box and avoid costly gaps.