What is Professional Civil Liability insurance?:how it works


Professional Civil Liability insurance covers you against material or personal damage, which you may cause by action, omission, or negligence to a third party during the exercise of your professional activity.

Professional RC derives from the legal concept of Civil Liability, which bases its foundation on article 1902 of the Civil Code, which reads as follows: “Whoever by action or omission causes damage to another, intervening fault or negligence is obliged to repair the damage caused ”.

When contracting Professional Civil Liability insurance, the insurance company assumes financial responsibility for material or personal damage caused as a result of your activity. But if you have not contracted this insurance, you must respond with your assets.

No matter how good you are at your job, you are not exempt from claims. The exercise of a profession carries this risk. But the impact of a claim can be much less, and even non-existent if we enjoy the protection of professional civil liability insurance.

Professional liability insurance, for whom?

Who is professional liability insurance for? Among others, to those professionals who belong to the field of construction (architects, quantity surveyors, engineers). But also to lawyers, judges, social graduates, bankruptcy administrators, experts, doctors, computer companies, photographers, etc.

There are many professional activities susceptible to professional CR. And there are not a few cases in which there is only a general RC when in reality it does not cover the insured for the civil liability derived from his professional activity. No one is free from making a mistake. If you want to work with complete peace of mind and focus on your business, you have to have your back well covered.

Remember: The claim or demand of a third party can sink the company that cost you so much to build if you are not covered by professional liability insurance.

Why take out professional civil liability insurance?

The reality is that today, many professionals are aware of the need to be protected when it comes to civil liability.

But Civil Liability insurance not only represents a guarantee for the professionals themselves. It is also an indicator of clarity and helps convey confidence to customers. . In fact, many professionals use it as a differentiating element and thus distinguish themselves from other competitors.

On the other hand, you also need to take out this insurance if you are going to work with public administrations or certain clients. This is an essential requirement for contracting/awarding.

In any case, you must find out if, depending on the professional activity that you are going to carry out, there is any regulation that requires the contracting of Civil Liability insurance with specific guarantees or capital.

Civil Liability Insurance for Self-Employed

Spanish entrepreneurs are important for the economy of the state, it is clear. Just take a look at the latest report from the European statistical agency, Eurostat, to realize that self-employed workers in Spain are beginning to gain a well-deserved role.

Thus, according to Eurostat, Spain is the sixth country with the highest number of self-employed registered during 2016. The Netherlands, Romania, Poland, Italy, and Greece were above Spain. Even so, our country managed to overtake nations such as the United Kingdom, Portugal, Belgium, France, and Germany.

Is self-employment liability insurance mandatory?

Is self-employment liability insurance mandatory? They are not required by law. But more than a quarter of Spanish entrepreneurs already have professional Civil Liability insurance. Because both companies and freelancers are governed by the same law and take advantage of article 1902 of the Civil Code that we mentioned earlier.

Construction Civil Liability Insurance

Are you a professional in the construction sector? At Correduría de Seguros Morera & Vallejo we offer you Civil Liability insurance for construction, a tailored product that allows you to do your job without worries.

If you are an engineer, architect, or surveyor, on our website you can request a quote without obligation for professional Civil Liability insurance.

Professional Civil Liability Insurance in 2017

According to data from ICEA (Cooperative Investigation between Insurance Entities and Pension Funds), in 2017 Civil Liability insurance represented 4.4% of total Non-Life Insurance. This represents an increase of 8% concerning the exercise of the previous year.

Likewise, the ICEA report reveals that Professional Civil Liability Insurance represents 24.17% of premiums and 8.14% of policies. They are followed, as can be seen in the following graph, by the service modality (18.91% of the premiums and 15.03% of the policies) and the construction modality, with 17.09% of the premiums and 11.04% of policies.

By Master James

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