If I am self-employed, do I need liability insurance?
Being autonomous carries a number of responsibilities. It is clear that we cannot control everything that happens around us, but what we can do is protect our interests and our business against adversities and incidents that are the order of the day, especially in the professional field. A liability insurance is the best alternative, though not in all cases recruitment is mandatory. If you are self-employed and your priority is to protect the business that you have built with so much effort, we invite you to read this new article in which we explain in what circumstances it is necessary to subscribe a Civil Liability policy.
Although, Civil Liability insurance is not mandatory for all self-employed, its contracting is highly recommended to deal with possible claims from third parties that may be affected by any misfortune within our establishment. Ultimately, it is enough for us to make a simple mistake to spoil years of work and find ourselves in the painful situation of having to deal with an unacceptable claim.
What is civil liability insurance for freelancers for?
A civil liability insurance for freelancersIt is the one that responds to the claims of third parties that derive from the business activity. In addition, they guarantee the self-employed business continuity despite any unforeseen event that involves the payment of compensation for damages .
Although the guarantees may vary depending on the needs and requirements of the self-employed, among other issues, a civil liability insurance covers the expenses resulting from the legal defense and the damages to third parties and employees . It also includes the contingencies related to the products and their commercialization and the consequences derived from a breach of contract: delay in delivery times, incorrect execution, etc.
Is it mandatory for the self-employed to take out civil liability insurance?
The contracting of a civil liability insurance for self-employed depends directly on the professional activity that they develop, however in certain branches it is mandatory. Activities related to the health sector, construction or even those likely to cause economic damage (notaries, auditors, lawyers) require the signing of a civil liability policy.
It is also mandatory for venues dedicated to offering entertainment or recreational activities : cinemas, theaters, arcades, gyms, bowling alleys, restaurants, bars, cafeterias, etc. Other businesses such as hairdressers and beauty centers, as well as collective public transport companies and freelancers dedicated to offering school transport services are also required to take out a civil liability policy.
The list of activities is extensive, but even so there are professions and types of businesses that are not required to take out a policy that covers damages to third parties. However, as we have mentioned before, the fact that it is not mandatory does not exempt the self-employed from being responsible for the damage caused to other people.
What types of coverage does Civil Liability insurance offer?
Although in general the coverage of a Civil Liability insurance for self-employed mainly includes compensation for material and personal damage caused to third parties, one of the advantages of this type of policy is that it can be customized depending on the characteristics of the deal. In addition, it is possible to add additional coverage such as:
- Employer Civil Liability . Is your business growing and do you need to hire staff? This coverage guarantees the payment of the compensation that your employees or their beneficiaries could claim from you as a result of a work accident.
- Products Liability . Imagine a person who is dedicated to the artisan production of honey and one of its products causes some damage to the consumer because it is in poor condition. How could you respond and cope with this situation? Civil Liability insurance is the solution!
- Cross Liability . Guarantee the compensation that the employees of your contractors or subcontractors may claim for personal injury.
- Accidental Pollution . It covers the damages that you cause to third parties due to accidental contamination originated in your facilities or during the provision of your services, as long as it is verified that it has not occurred in an intentional, planned or consensual manner.
- Civil Liability Finished Works . It covers the damages that the works or works that you have carried out may cause to third parties after their completion and delivery.
You have doubts? Are you ready to start protecting your business? From Allianz we are ready to help you. Contact us and discover all the options and coverage of our liability insurance. We adapt to your needs!