Liability insurance, also known as CR insurance, aims to protect the company or self-employed person from the risks that may occur to them. claims for damage caused to third parties or their property. It is the lifeline that many companies and professionals have so that, in the event of an unforeseen event, they do not have to respond with their assets, but rather it is the insurance that covers these contingencies.
Although liability insurance is only compulsory for those engaged in certain activities (e.g. lawyers, architects, natural and legal persons providing health services), in practice, this coverage is recommended for the vast majority of companies and self-employed professionals.
However, a plumber's liability cover will vary greatly from that required by a designer or a doctor. Just as a company handling chemicals will not require the same protection as an educational establishment.
At PIB Group Iberia we are dedicated to advising our companies and freelancers on the choice of the best civil liability insurance for their activity, since in addition to the liability of the activity itself, there are many other factors that influence the choice of the best insurance policy. specific coverage. Here you will find all the information about our civil liability insurance.
In this article we review the types of Civil Liability insurance by sector Let's get started!
1. Professional Liability Insurance
It protects against material, personal or primary patrimonial damages (these are economic damages not derived from material or personal damage) that a professional or a company may cause to a third party in the provision of services. An example would be that of a lawyer who misses the deadline for filing taxes and the damage is a sanction to his client.
These insurances are intended to cover possible negligence committed by the professionals in question, and which harms clients or affected third parties.
Normally (but not always), it is contracted in fully regulated activities, which have Professional Associations around which liability insurance is usually offered. These are some of the most common ones:
- Liability insurance for lawyers
As stated in the Statute of the Spanish Legal Profession, “lawyers in the exercise of their profession are subject to civil liability when, through wilful misconduct or negligence, they damage the property of others. interests the defence of which has been entrusted to them”. Bar Associations usually have their own group liability insurance, which can be extended by the lawyer according to his or her circumstances.
Legislation makes liability insurance compulsory for the following health professionals practising in the private health care sector, as well as legal persons or privately owned entities that provide any kind of health services. There are some companies that specialise in offering CR insurance to doctors, dentists, pharmacists, veterinarians, physiotherapists and nurses.
- Liability insurance for architects
By law, architects are responsible for the projects for ten years. Although liability insurance is only compulsory for them in some Autonomous Communities, in practice, the vast majority take out one in order to have their backs covered.
- Liability insurance for engineers
Liability to third parties for damage arising from the engineering occupation can be very costly, which is why most technical and senior engineers protect themselves with liability insurance.
- Other professional services
However, there are other professional services that, although not as regulated, also require insurance to protect their activity.
We are talking about consultants, photographers, designers, massage therapists, teaching activities and, in general, self-employed professionals who cannot risk responding with their own capital to the claims of third parties.
These professionals are less strictly regulated, but it is no less important to have civil liability insurance. If you are sued by a client, how are you going to defend yourself, are you going to pay compensation and legal costs? These are questions that a professional liability insurance policy can answer for you.
Each activity, of course, has its own specific coverage. For this reason, our role as an insurance brokerage is to help you find the policy that really covers your business, by comparing the most specialised companies in your sector. Because an engineer's insurance should not cover the same as that of a designer or a photographer.
2. Liability insurance for technology companies
Also known as ICT CR insurance, These policies are an example of how insurers are adapting to new needs. In this case, to the protection of the ever-increasing number of professionals and companies dedicated to computers and technology.
Although they have risks in common with other companies, technology-driven companies - such as marketing agencies, web design, programming, hosting or software commercialisation - need coverages that are completely adapted to their activity.
The ideal in this type of company is the combination of liability insurance with a cybersecurity policy, because of the leverage they have in technology. Thus, if they suffer or cause damage that is not the result of negligence on the part of the company's staff, but of a computer attack, it is cyberinsurance that must be held accountable.
Nowadays, the risk to companies' computer networks has become the most important for them, while the ransomware demanded in incidents of ransomware (data hijacking) have gone from tens of thousands of dollars to several million.
Industrial liability insurance is specially designed for industrial companies. companies engaged in manufacturing, handling or storage of products.
We can understand that the risks of companies in the automotive, logistics, chemical, textile or food sectors, to give just a few examples, have nothing to do with what we have seen so far. In fact, its activity may cause much more serious damage to property or personal injury than previous ones and hence hedging and risk is much more focused on it.
Some common coverages in this type of policy are claims, product and after-work liability, criminal defence or employer's liability (damages suffered in an accident at work by the workforce).
Depending on their activity, it is highly recommended that industrial companies should also have an environmental liability insurance... Especially depending on the raw material used (chemicals, for example) and its location (being in the middle of an esplanade is not the same as being next to a river or a mountain).
4. Liability insurance for construction companies
In construction, the risk is more than evident, due to the difficulties that this task entails both at a technical and execution level. As in the case of industry, the risk is eminently one of causing damage to property or personal injuries.
These policies are tailor-made for developers, construction companies or sub-contractors that are involved in building or civil engineering. Due to the magnitude of these insurances, in many occasions companies offer two options: a policy per work or a general policy, which covers the company for all the works they carry out per year.
5. CR insurance for installers
Let's take the example of a plumber: in his activity, the risk is concentrated in the possible material damage that he may cause by his activity. Installation work is very varied, From plumbing, gas, heating and air conditioning to solar panels, lifts and high and low voltage electrical work. That is why, each type of installer has its own compulsory insurances The Commission has to ensure that the information is not misleading and that the coverage is adapted accordingly.
6. CR insurance for educational companies
Academies, schools, colleges, universities and any training centre have a responsibility that we wanted to draw from the previous areas we have seen. Each of them performs different activities, but they have in common that they concentrate a large group of people in a single place, so the sum insured is an important factor.
To get an idea of the degree of specificity of these education sector liability insurances, some companies offer protection against claims for damages suffered by pupils in the event of bullying due to the negligence of the school in failing to ensure their safety. They also cover other risks such as penalties for non-compliance with the Personal Data Protection Act, which is so important nowadays.
If you want us to help you find the insurance you need, don't hesitate to contact us.
