What is liability insurance?

liability insurance
liability insurance

This is the compensation received by a person to whom the company has involuntarily caused harm. Learn more about the implications of CR.

If you have a company and an employee or client has an accident while carrying out the work activity, the civil liability insurance is the one that responds to this situation. Claims from third parties for damage caused generally merit compensation and will depend on the type of damage caused. This is exactly what Civil Liability, also known only as RC, covers.

CR insurance guarantees appropriate coverage without affecting the assets or the operations of the company. For this reason, it is one of the most important policies for a company and, also, one of the most sold.

Now, let’s take a closer look at what liability insurance covers.

According to the law, what is CR?

In accordance with article 1903 of the Civil Code, every person is required to answer for himself or for all those for whom he must answer when damage is caused to third parties. According to the article 1902:

“He who by action or omission causes damage to another, intervening through fault or negligence, is obliged to repair the damage caused.”

Those who answer for others vary according to each case, such as parents for their children, guardians for those under guardianship, directors, and companies for their employees, and so on. So, the concept of Civil Liability or RC can be defined as financial compensation in the event of damage to third parties, and even in some cases, requires a response in legal confrontations.

And what is professional CR?

Professional Civil Liability is one that derives from errors, negligence, or omissions in the execution of the professional activity that have caused damages, personal or material economic damages to a client or third party. In these cases, you must also respond with compensation or compensation.

This policy is especially important for premises (we recommend you read our article on insurance for rented premises ), consultants, law firms, and offices.

What are the types of CR for companies?

Like everything, it will depend on each case and the need for coverage. Whether it is hired for a freelance, a small company, or a business.

  • Self-employed

These policies provide protection when there is damage to third parties arising from commercial activity. Coverages vary according to the requirements and activity of the person. They can include bonds, court costs, and derivatives, personal defense and damage claims, claims in supply contracts, and defense before the labor inspectorate, among other services.

  • SME

The CR for SMEs provides coverage for damages to third parties when they are the product of business activity. These insurances cover indemnities and derived defense expenses and also protect the owner and employees when a third party is affected by the professional activity.

  • Directors and Administrative (D&O)

The coverage protects the personal assets of managers and administrators in a company. And manages the economic consequences of possible defense processes. These insurances generally protect directors of investees, as well as subsidiaries created and acquired during the insurance period.

So what is an RC policy for?

Damage to third parties can mean financial compensation, or in the case of not reaching an agreement, a legal confrontation. In both cases, the payment of a large amount of money may be required that affects the wealth of a person or the assets and capital of a company.

To be able to respond without going bankrupt or surrendering savings and assets. It is best to have an insurance policy that responds on a case-by-case basis. At Zurich Empresas, there is a variety of insurance designed for you, among which you can find liability insurance. 

What’s the price?

You can calculate the price of your insurance at any time. Too easy. Click and fill out the form with your company data. It will only take you 1 minute.

Remember that each type of civil liability has a different cost. And everything will depend on the type of insurance and coverage you choose. For our part, we are always at your disposal to clarify any questions you may have.

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