What Is Public Liability Insurance in Spain?
Public liability insurance protects your business if a third party is injured (bodily injury) or suffers property damage because of your business activities.
The insurer can:
- Pay compensation (damages) to the third party, within policy limits
- Cover legal defence costs
- Manage the claims process on your behalf
It does not cover:
- Your own injuries
- Damage to your own property
- Pure financial losses caused by bad advice (that's usually professional indemnity)
Who Needs Public Liability Insurance in Spain?
You should consider public liability insurance if:
Examples of claims:
- A customer slips on a wet floor in your shop and breaks a leg
- You scratch or break a client's expensive furniture while working in their home
- At an event you organise, a poorly secured banner falls and injures a visitor
Public Liability vs Professional Indemnity – What's the Difference?
Public Liability
Injury or property damage to third parties (physical harm / physical things)
Example: A client trips over a cable in your office
Professional Indemnity
Financial loss caused by professional advice, design, error or omission
Example: Your bad advice makes the client lose €100,000 with no physical damage
Many businesses need both, especially consultants who also have physical interactions (visits, training, events).Read our detailed comparison guide →
What Does Public Liability Insurance in Spain Typically Cover?
1. Bodily Injury to Third Parties
Clients, customers, visitors, passers-by—on your premises or at places where you're working.
- • A client falls on a poorly maintained step at your office
- • A tool falls from your scaffold and injures someone below
2. Property Damage
Physical damage to property belonging to others.
- • You spill paint on a client's antique furniture
- • Your cleaning machine scratches a polished floor
- • A pipe you install bursts and damages a neighbour's apartment
3. Legal Defence Costs
Lawyers' fees, court costs, and certain expert reports—within policy terms and limits. Even if a claim is exaggerated or unfair, you may still need legal defence.
4. Product Liability (Sometimes Combined)
Covers injury or damage caused by products you sell or distribute. Important for shops, e-commerce, importers, manufacturers.
Check whether product liability is included, excluded, or needs a separate extension.
What's Usually Not Covered?
Always ask your broker or insurer to explain grey areas in writing.
Coverage Limits Comparison: Which Level Do You Need?
Choose your coverage based on your risk exposure and client requirements:
€150,000
per claim
- Low-risk consultants
- Home-based businesses
- No physical client visits
- May not meet contract requirements
From €100/year
€300,000 – €600,000
per claim
- Most SMEs and autónomos
- Retail and hospitality
- Service providers
- Meets most landlord requirements
From €200-500/year
€1,000,000+
per claim
- Construction and trades
- Event organizers
- Corporate client contracts
- High-value property access
From €400-1,500/year
Note: Some landlords, shopping centres, and event venues require a minimum limit in the contract (e.g., at least €600,000 per claim). Always check those clauses before choosing your limit.
Profession-Specific Requirements in Spain
Different professions have varying liability requirements and typical premium costs:
| Profession/Activity | Mandatory? | Typical Limit | Est. Cost/Year |
|---|---|---|---|
| Construction / Trades | Often required by contracts | €600,000 – €1,000,000+ | €500 – €2,000 |
| Electricians / Plumbers | Strongly recommended | €300,000 – €600,000 | €300 – €800 |
| Cleaners / Housekeepers | Often required by employers | €150,000 – €300,000 | €150 – €400 |
| Event Organizers | Required by venues | €600,000 – €1,000,000+ | €400 – €1,500 |
| Restaurants / Bars | Strongly recommended | €300,000 – €600,000 | €250 – €700 |
| Fitness / Yoga Instructors | Required by gyms/studios | €300,000 – €600,000 | €200 – €500 |
| Photographers / Videographers | Recommended | €150,000 – €300,000 | €150 – €350 |
| IT / Tech Consultants | Optional (PI more important) | €150,000 – €300,000 | €150 – €300 |
| Retail Shops | Strongly recommended | €300,000 – €600,000 | €200 – €600 |
| Landlords | Recommended | €150,000 – €300,000 | €100 – €250 |
Important: These are estimates for typical scenarios. Your actual premium depends on turnover, location, claims history, and specific activities. Always get personalized quotes.
Claims Process for Public Liability Insurance
If an incident occurs that may lead to a claim, follow these steps:
Report Immediately
Contact your insurer or broker within 48-72 hours. Don't admit liability or make any promises to the claimant—let your insurer handle communications.
Document Everything
Take photos and videos of the incident scene, any damage, and conditions that contributed. Get witness names and contact details. Note the date, time, and circumstances.
Complete Claim Form
Fill out the official claim form (parte de siniestro) with all details. Attach photos, witness statements, and any police or medical reports if applicable.
Investigation & Assessment
Your insurer will investigate the claim, assess liability, and may appoint loss adjusters or legal representatives. Cooperate fully and provide any additional information requested.
Settlement
If the claim is valid, your insurer will negotiate and pay the settlement (up to your policy limits). Legal defence costs are typically covered separately from the main limit.
Common Mistakes to Avoid
- • Admitting fault or apologizing (can be used against you)
- • Delaying notification to your insurer
- • Disposing of evidence or repairing damage before documentation
- • Negotiating directly with the claimant without insurer involvement
Common Mistakes with Public Liability Insurance
Avoid these pitfalls that can leave your business exposed:
Choosing the Cheapest Option
Lower limits save money until a claim exceeds your cover. The difference between €150,000 and €600,000 cover might only be €100-200/year.
Not Declaring All Activities
If you do work outside your declared activity code, claims may be rejected. Update your policy when your business evolves.
Assuming You're Covered
Don't assume your landlord's or client's insurance covers you. As a contractor or tenant, you usually need your own policy.
Ignoring Territorial Limits
If you work in other countries but have Spain-only cover, you're unprotected abroad. Check and extend territorial scope if needed.
Forgetting to Renew
A lapse in coverage means you're exposed. Set reminders or use automatic renewal to avoid gaps in protection.
Not Reading Exclusions
Every policy has exclusions. Know what's not covered—asbestos, pollution, product recall, and certain high-risk activities are common exclusions.
How Much Public Liability Cover Do I Need?
The right level depends on:
- Your sector and activity (café vs consulting vs construction)
- Whether you work with large corporate clients or public bodies
- The type of contracts and venues you deal with
- Your turnover and number of employees
- Whether you access high-value properties or work in public spaces
What Affects the Price of Public Liability Insurance?
Type of business
Activity code / CNAE
Annual turnover
Facturación
Number of employees
Staff count
Work location
On third-party premises, at height, with crowds
Claims history
Previous liability claims
Territorial limits
Spain only, EU, worldwide
Lower risk + lower exposure → lower premium.
Higher risk (construction, events, hospitality) → higher premium.
Important Points for Expats & Foreign-Owned Businesses
Language & documentation
Policies and conditions are often in Spanish only. Make sure you get a clear explanation in your language.
Contract requirements
Corporate clients may ask for specific coverage limits, proof of insurance (certificado de seguro), or to be added as an additional insured.
Territorial scope & jurisdiction
Where does cover apply? Only in Spain? EU? Worldwide? Which law governs the policy?
Autónomos & freelancers
Even a one-person business can face a large claim. Some clients won't work with you unless you show proof of public liability insurance.
Combination with other covers
You may also need professional indemnity, contents, equipment, business interruption, or cyber insurance. Sometimes it's cost-efficient to bundle these via one broker.
How to Choose the Right Public Liability Insurance
Map your risks
Do clients visit you, do you visit them, or both? Do you organise events or work in public spaces? Do you handle clients' property?
Check contract and legal requirements
Any mandatory cover levels from landlords, malls, councils, or big clients? Any sector-specific regulations?
Decide your limit
Choose a realistic sum insured—not just the cheapest. Think in terms of "worst credible scenario."
Find a broker with B2B & expat experience
They can translate Spanish insurance jargon and know which insurers work with foreign-owned businesses.
Review annually
If your turnover, activities, or staff numbers change, update the policy and the declared activity accordingly.
Ready to protect your business?
Get a tailored public liability insurance quote from our team. We help expats and small businesses find the right cover at the right price.
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