Workers’ Compensation insurance compulsoryJulia Jannin
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:
- 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
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