Workers' Compensation insurance compulsory

Is Workers' Compensation insurance compulsory in Spain?

Workers' Compensation insurance also called Work Accident Insurance or "seguro accidentes por convenio" in Spanish, is compulsory if it is required by the collective agreement ("convenio") in which the company's activity is included.

It is therefore important to know the collective agreement of the professional sector to which the company belongs. This is the document that shows the relationship between employees and employers, establishing the rights and obligations of the company and the workers. The collective agreements, which are concluded and renewed periodically, include, in some cases, a compulsory insurance that covers the compensation of possible accidents that employees may suffer in the course of their work. This is the compulsory conventional insurance "seguro de accidentes por convenio".

Why take out Work Accident insurance?

The purpose of this compulsory Work Accident insurance is to protect employees against possible accidents that may occur during the working day. Thus, in the event of death or disability following an accident at work, the insurance company will compensate the employee or beneficiaries.

What does this insurance cover?

The coverage of conventional insurance depends on the sector. The collective agreement determines the insurance obligations of the policy that the company must take out, detailing the guarantees, the minimum sum insured, the compensation in the event of an accident, etc.

The following coverage can be found in an "Accidentes por convenio" insurance contract:

• Death
• Permanent absolute disability
• Total disability

What happens if the company does not have insurance in force?

Not having compulsory Workers' Compensation insurance can cause many problems for the employer. In fact, a claim or penalty may jeopardise the stability of the company.

The employer is responsible for the employees and must ensure that they carry out their activity in the best conditions of safety and prevention. Moreover, if the employer is obliged by the collective agreement to take out industrial accident insurance, he will be exposed to an administrative claim. Non-compliance with the obligations towards the employees can be considered as a very serious offence, punishable by large fines, which can go up to more than 150,000 euros.

If one of the employees suffers an accident at work and the company has not taken out insurance, the employer must bear the costs and compensation for the accident together with its assets. Depending on the coverage that each collective agreement establishes as compulsory, the amount to be paid for the claim can reach very high figures and jeopardise the financial situation of the company.

Taking out compulsory life or accident insurance should not be confused with membership of a "mutua de trabajo", responsible for providing health care in the event of an accident at work or occupational illness. It is linked to the Spanish social security system.

How much does this insurance cost?

The price of these insurances depends on various factors, such as the risk of the activity (a company in the construction or catering sector, has more risks than an office), the location of the company or the number of employees, which is usually a determining factor in the calculation of the insurance premium.

For an administrative activity, the cost is around 50 euros per year per employee.

What information do I need to provide to receive an insurance quote?

In order to receive a quote for Workers' Compensation insurance, you will need to provide the following information:

• CIF and company name
• Number of employees
• Collective agreement number / "convenio"

You can fill in a quote request by clicking here.

If you do not have Workers' Compensation insurance, do not hesitate to ask us for a comparison of the best insurance here

There are many insurance companies and different contract options. For this reason we recommend that you use the services of a specialist broker who will be able to guide you. If you have any questions, do not hesitate to contact us directly by telephone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected]

All you need to know about business insurance

What is business insurance?

The "Comercio" insurance is a type of insurance policy designed mainly for SMEs and offices. It is an insurance policy that covers compensation for damages related to the company's activity. It covers possible damage caused by the most common claims on the building and its contents:

• Building  means the "walls" of a commercial premises, an office, a warehouse as well as all fixed water, gas, electricity installations...
• Contents means  furniture, computer equipment, machinery and stocks.¡

The insurance includes civil liability in the event of claims by third parties as owner or tenant of the premises and for the activity carried out.¡

Examples of commercial insurance: store, office, restaurant/bar, bakery, shop....

What are the main guarantees of the business insurance?

In general, the range of claims covered by commercial building insurance is very wide:

• Fire and explosion
• Flight
• Atmospheric damage
• Water damage
• Electrical damage
• Window breakage
• Liability Operating, Real Estate/Rental, Product and Employer's Liability
• 24/7 assistance
• Legal and IT assistance

The Comercio insurance includes civil liability in the event of claims by third parties as owner or tenant of the premises and for the activity carried out.

It is also possible to include as an option the product/service liability - (guarantee strongly recommended for a restaurant, for example, to cover food poisoning) - as well as possible claims against employees through the employer liability.

Other  insurances such as Professional Civil Liability are also closely linked to the professional activity of the insured and may even be essential for the exercise of his profession. In this case, you will need to take out specific insurance to cover the activity. You can click on our article exclusively dedicated to professional liability insurance by clicking here.

Another very useful cover for businesses is the one that covers loss of profits. With this cover, it is possible to cover the income that a company ceases to receive due to a claim covered by the contract (fire or water damage, for example). It covers the gross margin that the company loses due to the cessation of activity and the fixed expenses that must continue to be paid despite the loss such as salaries, suppliers, taxes, etc.

Who can take out business insurance?

Natural or legal person, owner of the property to be insured as tenant or owner of the premises. The owner will have to insure the "walls" and civil laibility insurance and the tenant will have to take care of its contents and civil liability. He will also be able to insure the work carried out in the premises.

LIBERTY Offer ( until 26/05/2021) :

• Corte inglés gift card of 30€ for any insurance with a minimum premium of 200 euros, 60€ if premium over 400€/year and 100€ if premium over 600€/year.

If you do not have Business insurance, do not hesitate to ask us for a comparison of the best insurance here

There are many insurance companies and different contract options. For this reason we recommend that you use the services of a specialist broker who will be able to guide you. If you have any questions, do not hesitate to contact us directly by telephone on +34 93 268 87 42  or through WhatsApp on +34 627 627 880 or by email: [email protected].

Green card and car insurance in Spain

What is the green card?

The "tarjeta/carta verde" or green card is a document to prove that the driver has adequate insurance cover ( third party liability insurance) for driving abroad.

What is it for?

This green card was designed to serve two purposes: to facilitate the movement of cars across international borders and to ensure that victims of accidents caused by foreign vehicles are not disadvantaged.

In which countries is the Green Card compulsory?

The countries are: Albania, Bosnia and Herzegovina, Belarus, Israel, Iran, Moldova, Montenegro, Morocco, Russia, the former Yugoslav Republic of Macedonia, Tunisia, Turkey, Ukraine .

Do I need the Green card to drive to UK, with Brexit?

The UK government has indicated that it is not compulsory to carry a "Green Card" (International Insurance Certificate). It is necessary to have any document issued by the insurer that proves the existence of compulsory insurance cover, whether it is the Green Card or another document, and it can be either in paper or electronic format. This document must contain the name of the insurer, the registration number to be insured, details of the insured vehicle (make/model), as well as the period of coverage.

What should I do if I have an accident abroad?

If you have an accident abroad, you will have to fill in an accident report. The model is the same in all European Union countries.

How do I get a Green Card?

In Spain, insurance companies are not legally obliged to issue the Green Card with the motor insurance policy. Despite this, there are insurance companies that provide it with the rest of the documentation when the insurance is taken out. However, you will have to apply to your insurance company every year, as the company will not send it to you automatically.

Note that: After many years of work initiated at the international level by OFESAUTO, the Council of National Offices (the international body that governs the format and structure of the "Green Card" document for the 48 countries that make it up) approved at its last General Assembly the decision to generate the document in PDF FORMAT so that it can be emailed to the insured and printed in black and white, in A4 format.

Circulation in Spain: what documents should you carry with you?

You should carry in your car  the following document to avoid having to pay a fine in the event of a police check:

• Driving licence
• Vehicle registration document ("permiso de circulación/logbook") and technical data sheet of the vehicle “ficha técnica”
• Technical inspection (ITV ):  sticker on the front windscreen

Note that: Proof of payment of your insurance policy:

With the new regulations on civil liability of motor vehicles (Royal Decree 1507/2008, of 12 September BOE 13.9.2008), it is no longer obligatory to print the receipt of the insurance policy with the rest of the documentation, since police officers will check whether the vehicle is insured via a computer system called FIVA.

If you do not have Car insurance, do not hesitate to ask us for a comparison of the best insurance here

If you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected] 

Car insurance: Take out your car insurance in Spain

Is car insurance compulsory in Spain?

In Spain, the only compulsory insurance that exists is third party liability insurance, which is compulsory for any vehicle registered to the DGT (General Directorate of Traffic).

Why take out car insurance?

Taking out civil liability insurance will enable your insurance company to cover the expenses that may result from an accident in which your vehicle is involved and for which you are responsible. It will not only be used to repair the person's car, but will also provide the corresponding compensation.

What kind of formulas exist in Spain?

There are 3 formulas that you can take out to insure your vehicle:

• Third party: will cover your civil liability in the event of an at-fault accident.
• Third party theft and fire: will cover your civil liability in the event of an at-fault claim, but also for damage linked to theft and fire.
• Fully comprehensive with/without deductible or excess: in addition to your liability insurance,  the insurance will also cover any damage your vehicle may have suffered.

I have a no claim discount in UK : will it be applied in Spain?

Not all companies will apply your no claim discount

As insurance broker specialising in insurance for expatriates living in Spain, we have specific agreements with the insurance companies and we will be able to apply your no claim discount without any problem.

To receive a car insurance quote, you can ask for a quote by clicking here.

Can I insure my vehicle with a UK registration in Spain?

Yes, without any problem because we have a specific agreement with an insurance company. The insurance will be valid for 12 months, renewal every year,  and you will be able to insure it third party, third party with theft or fire or fully comprehensive.

If you do not have Car insurance, do not hesitate to ask us for a comparison of the best insurance here

If you have any questions, please do not hesitate to contact us directly by phone on +34 93 268 87 42 or through WhatsApp on +34 627 627 880 or by email: [email protected]