Civil liability in companies, what is it and what does it cover?

 Whether you have a long career as an entrepreneur or if you are new to this world, it is important that you know what risks can occur, since day-to-day work can become a risk and unintentionally cause damage to both people that are directly and indirectly related.  

For example, floods, worker accidents or injuries that, due to poor company maintenance, may occur to customers. In any of these cases, the costs of lawsuits can increase considerably.  

From Hiscox we want to tell you why it is necessary for you to have a Liability insurance for business, since thanks to it you will insure and protect your company and workers, covering personal and material damage to third parties.  

What is civil liability in companies?

Talking about civil liability in companies refers to the fact that your company faces the damages that it may have caused to other companies or third parties, whether these are physical or material damages.  

Tips to maintain security in your company

Below we will tell you a series of tips to maintain the security of your company: install a security system so that thieves think twice before entering, close doors and windows when leaving and have locks, tear up business and personal documents before throwing them away and have interior security pins to make it more difficult for thieves to get in and out.  

What damage can a company cause?

There are three types of damage that a company can cause:  

• Personal damage : refers to possible incidents where a person can be injured by, for example, an object that has fallen from a shelf.
• Material damage : this is where situations are framed where due to an oversight of your company, another is affected. For example, a water leak that generates humidity in the store below.
• Economic damages : in the event that, for example, there is a fire in your company and the premises next door cannot open, it will be thanks to your insurance that you can pay for the economic damages produced.

What are the civil liability insurance coverages in companies?

There are a series of coverages where civil liability insurance protects the company from damages caused to third parties. Let’s see what they are:  

• Employer’s RC: is in charge of covering the personal injury claims of workers after a work accident. Only when the company is the insured and civilly responsible.
• Exploitation RC : focuses on covering personal or material damages in case of causing damage to third parties during work activity.
• Locative RC : covers mishaps that occur in the premises where the business is carried out.
• Product or post-work RC: focuses on claims for damages caused to third parties or by the product both manufactured and managed by the insured after the product has been delivered.

How do I know what my policy covers?

It is important that before contracting a Civil Liability Insurance, you check what it covers and what it does not so that, in case there is any damage, then there are no last-minute surprises when verifying that the damage is covered for us. That is why you have to carefully read all the conditions and do not forget the fine print.  

Is it mandatory to have civil liability insurance?

Depending on which sector your company belongs to, Civil Liability Insurance will be mandatory or not. In general, when creating a company, it is the Administration that communicates whether it is mandatory to have this type of insurance in order to work.  

Regardless of the answer, from Hiscox we recommend having a Civil Liability Insurance, since with this policy you will be able to rest easy when carrying out your work, because you will have financial support in case of damage to third parties, and the compensation will not be paid. of your charge.  

How much does it cost to have civil liability insurance?

If you are considering having civil liability insurance, surely you have wondered about the price. There is no exact price, since it depends on the scope of the legal coverage. 

For this reason, in addition to looking at the price, it is best to also compare the insurance coverage you have in mind, as well as the reliability of the insurer, to choose the one that best suits you, thus protecting yourself from any claim or damage. 

At Hiscox we care about companies and freelancers and we want them to be protected when doing their jobs. We offer general liability insurance and insurance of professional civil liability. If you combine both, you will be protected against the most common risks.