Civil Liability Insurance: Who Qualifies and What You Get
Travel agencies in Spain must hold this insurance to cover potential damages and meet legal requirements.
This insurance provides coverage for damages or losses caused to third parties during the course of your business activities. It acts as a protective measure for your professional operations.
Who it's for
This scheme is mandatory for anyone operating a travel agency. If you are running a business that provides travel services, you are required to have this coverage in place to remain compliant with regulations.
What you get
The benefit of this insurance is the financial protection provided against third-party claims. The cost of maintaining this protection is structured as an annual premium. The specific amount you are required to pay is not a fixed fee for everyone; instead, it is calculated based on your agency's annual turnover. This means the scale of your business directly influences the cost of your coverage.
What it costs you
While the cost is not explicitly stated as a single figure, it is a recurring expense paid via an annual premium. Because the premium is tied to your agency's turnover, your business's financial growth will influence what you pay each year. You will need to budget for this as a regular professional expense to ensure your agency stays compliant.
The catch to know
When selecting a policy, you must ensure that you meet the minimum coverage amounts set by law. It is not enough to simply have insurance; the policy must provide a specific level of protection that aligns with legal requirements for your sector.
How to apply
- Determine your agency's annual turnover to understand your premium basis.
- Contact a private or regulated insurance provider.
- Confirm that the coverage limits meet the minimum amounts required by law.
- Pay the annual premium to secure your coverage.