32 min read
A translator delivers a purchase contract in English, and one sentence on the withdrawal period is translated wrongly. A web developer installs an update, and his client’s online shop is down for a whole weekend. A consultant recommends a funding programme whose deadline passed long ago. Nothing is broken in any of the three cases, and yet each one ends with a bill that can easily run to five figures.
This is the kind of loss that professional liability insurance is for, also called professional indemnity insurance and known in Spain as seguro de responsabilidad civil profesional. If you work in Spain as a freelancer, as an autónomo or through your own company, the first question you usually ask is whether it is compulsory. For most professions the answer is no, and even then it is the less important question.
What matters more is whether an existing policy actually responds when it counts. In Spain that depends on a clause many self-employed people have never had to think about, on a limitation period that is usually five years, and on what you stated when you took out the policy.
- There is no general obligation for self-employed people in Spain to take out professional liability insurance. Only a law can require it, and only for activities that pose a direct risk to the health or safety of the client or a third party, or to the client’s financial security.
- The law requires insurance or an equivalent guarantee, for example, for healthcare professionals in private practice, for mediators and for every professional firm set up as a sociedad profesional.
- It is often required by clients and public contracting authorities. For public contracts, the tender documents set out which cover you have to prove.
- Spanish law allows policies that only cover claims made during the policy period. In return, it requires retroactive cover or an extended reporting period of at least one year. Check whether your policy is built this way.
- Under the Código Civil, contractual claims against you generally become time-barred only after five years. That is a long window, so the time limits of your policy matter.
- A policy from another EU member state can satisfy a Spanish insurance requirement if it is equivalent and you remain established in that country. Whether it actually covers claims arising in Spain depends on its territorial scope.
- You report a claim within seven days of becoming aware of it, unless your policy allows a longer period.
What professional liability insurance covers in Spain
Professional liability insurance covers claims for damages that a client or a third party brings against you because of a mistake in your professional work, and it usually also pays for your defence against unjustified claims. At its core is financial loss: money someone loses without any property being damaged or anyone being injured.
In these cases the loss consists solely in the client being worse off than they would have been without your mistake. The technical term is daño patrimonial puro, pure financial loss. This kind of loss needs a product of its own.
How it differs from general liability insurance
General liability insurance, in Spain responsabilidad civil general or de explotación, covers something else: injury and property damage that arise from your work. A client trips over a cable in your office, or a glass table breaks while a trade fair stand is being put up. For a trade business or a shop this cover comes first; for advisory work it is professional liability.
Many self-employed people need both, and both can be combined in one policy. What matters then is that both parts are named explicitly. If your policy only mentions responsabilidad civil without the professional element, check carefully whether financial loss is included at all. How the different covers for a business fit together is explained on our page on business insurance in Spain.
How it differs from D&O insurance
If you run your business through a sociedad limitada and are its director, you carry a second, separate risk: personal liability as an officer of the company towards the company itself, its shareholders or its creditors. That is what directors’ and officers’ liability insurance (D&O) is for. It does not replace professional liability insurance; it covers a different claimant and a different kind of mistake.
Is professional liability insurance compulsory for the self-employed?
For most self-employed people in Spain, professional liability insurance is not a legal requirement. Only a rule with the force of law may make it compulsory, and only for activities that pose a direct and specific risk to the health or safety of the client or a third party, or to the client’s financial security.
This is set out in Article 21 of Ley 17/2009, the Spanish law transposing the EU Services Directive. The result is a patchwork: whether your profession carries an obligation is not listed in one central catalogue but in the rules governing each profession.
Where the law expressly requires insurance
Three examples in which the obligation is written into the law itself and not only into the rules of a professional body:
Healthcare professions compulsory
Anyone working in private healthcare must, under Article 46 of Ley 44/2003, hold liability insurance, a surety or another financial guarantee covering harm to persons. The main conditions are set by the Comunidades Autónomas, Spain’s autonomous regions.
Mediators compulsory
Anyone working as a mediator in civil and commercial matters must, under Article 11 of Ley 5/2012, take out insurance or an equivalent guarantee covering liability arising from that work.
Professional firms compulsory
Every sociedad profesional must, under Article 11 of Ley 2/2007, take out insurance covering liability arising from its corporate purpose. This means companies whose purpose is the joint practice of an activity that requires an official university degree and registration with a Colegio profesional, the professional association. Such companies must then be set up as a sociedad profesional. A sociedad limitada carrying out a different activity, such as IT consulting without compulsory registration, does not fall under this rule.
Other professions have their own rules as well, some at national and some at regional level. For regulated professions, the relevant Colegio profesional is the first port of call: ask there which requirement applies to your profession in your region and whether there is a group policy for members.
The question that matters more than the obligation
Whether a law requires the insurance says nothing about whether you need it. An IT consultant, a translator or a marketing freelancer is usually not under any legal obligation and is still liable for the consequences of a mistake. As an autónomo you are personally liable, not just with your business assets. The obligation protects the client. A voluntary policy protects you.
A common misunderstanding among newcomers: contributions to the self-employed scheme RETA cover illness, accidents, retirement and incapacity for work. They do not protect you against claims for damages from your clients. Only private liability insurance does that.
When clients or public authorities ask for proof
In practice, the need for professional liability insurance often comes from a contract rather than from a law. Larger clients, agencies and public contracting authorities may ask for proof before they award a contract.
Public contracts
For public contracts this is provided for by law. Under Article 87 of the Ley de Contratos del Sector Público, the contracting authority may ask a bidder to prove its economic and financial standing through professional liability insurance where this is appropriate to the contract. The amount required is stated in the tender documents.
If the tender documents for contracts that do not require classification set no minimum requirements of their own, a fallback rule applies: for professional services, professional liability insurance at least equal to the estimated value of the contract can replace proof of turnover. It must be in force until the deadline for submitting bids, together with an undertaking to renew it for the whole term of the contract. Alternatively, a binding undertaking to take it out if you win the contract is enough, to be fulfilled within ten working days.
If you bid for contracts from municipalities, island councils or other public bodies, clarify this in advance. A policy cannot be arranged overnight, and proof is provided through a certificado de seguro from the insurer showing the amount, the risks covered and the expiry date.
Private clients
With private clients, the requirement is set out in the framework agreement or the purchasing terms. Read the clause carefully: it often asks not just for a policy but for a specific minimum amount per claim, cover in particular countries or for the client to be named as an additional insured. If your policy does not meet this, you are in breach of contract before any mistake has even happened.
How you are liable in Spain, and for how long
As a self-employed professional in Spain, you are liable for mistakes that result from negligence, and under the Código Civil a contractual claim against you generally becomes time-barred only after five years. That period is the reason why the time limits of your policy deserve so much attention.
Two bases of liability
The Código Civil distinguishes two routes. Towards your contractual partner, you are liable under Article 1101 if you act with intent, negligence or delay in performing your obligations. Towards third parties with whom you have no contract, you are liable under Article 1902 if you cause them harm through your fault.
For the self-employed, the contractual route is the usual one. The client does not have to prove intent; negligence is enough.
A five-year limitation period
Under Article 1964(2) of the Código Civil, personal claims without a specific period of their own become time-barred after five years, counted from the moment performance can be demanded. Contractual damages claims fall into this category. Claims under Article 1902, by contrast, are subject to only one year under Article 1968, counted from when the injured party becomes aware of the harm.
Two qualifications apply. In regions with their own civil law, such as Catalonia, different periods may apply. And if your client contract is governed by foreign law, the limitation period under that law applies.
What is sometimes assumed
A claim runs out after a few years
It is easy to assume that a client can only bring a claim for a few years after the work is done, and that a policy taken out before the move simply carries on protecting you. Neither can be taken for granted.
Spain
Five years for contractual claims
The period runs from the moment performance can be demanded. Insurance is compulsory only where a law provides for it for a specific activity. If you are used to a shorter period, it is easy to underestimate how long you remain liable.
The practical consequence is simple: a mistake on a job you do today can still catch up with you in 2031. A policy that only covers what happens and is reported during its term does not automatically fit that timeframe.
Claims made: the clause that decides whether you are covered
A Spanish professional liability policy may be designed to cover a loss only if the claim is made during the policy period, and not simply because the mistake happened during that time. This clause is called delimitación temporal in Spanish and claims made in English, and the Spanish Insurance Contract Act allows it in two variants.
The rule is in Article 73(2) of the Ley 50/1980 de Contrato de Seguro. It permits two models:
| Model | What is covered | What the law requires as a minimum |
|---|---|---|
| Extended reporting period | Claims made during the policy period or within a set period after the contract ends | This period must be no shorter than one year, counted from the end of the last renewal or, if there was no renewal, from the end of the policy term |
| Retroactive cover | Claims made during the policy period, including for mistakes from before it started | Cover must include mistakes that may have occurred at least one year before the policy starts |
Under the Act, both models are cláusulas limitativas, clauses that restrict your rights. Under Article 3 of the same Act, such clauses must be specially highlighted in the policy and specifically accepted by you in writing. A limitation tucked away inconspicuously in the small print does not meet this requirement. So if you sign such a policy, you should know at which point you are accepting it.
Why one year is often not enough
The law only sets the minimum. One year of retroactive cover is not much when contractual claims run for five years. Longer or unlimited retroactive periods can be agreed; the law sets no upper limit. Whether an insurer offers them, and on what terms, depends on the individual quote. What your policy provides is stated in the condiciones particulares, the policy schedule.
A consultant holds a policy from 2021 to the end of 2025 under the extended reporting period model, with exactly one year. On 1 January 2026 she switches to a cheaper insurer whose new policy uses the retroactive cover model, with exactly one year.
In March 2027 a client gets in touch about a mistake in a project from autumn 2024 and demands 18,000 euros. The old policy only covers claims made by the end of 2026. The new one, with its retroactive cover, only reaches back to January 2025. The mistake from autumn 2024 falls through both nets. The claim is not time-barred, however: if the contract is governed by the Código Civil, the five-year period ends in autumn 2029 at the earliest.
This is a calculation with assumed dates, not a case from our practice. It shows why a change of insurer has to be planned with both policies in view, not just the premium.
If you stop working
The same question arises when you retire, give up your business or leave Spain again. With pure claims-made cover, protection for anything reported afterwards ends when the policy ends, apart from the agreed extended reporting period. So before you cancel, ask whether your insurer offers a longer extended reporting period for when you cease trading. Settle this while the contract is still running.
Your policy from home after the move
A professional liability policy from another EU member state can satisfy a statutory insurance requirement in Spain if it is equivalent and you remain established in that country. Whether it actually covers claims arising from your work in Spain is a separate question, and the answer lies in the terms of your contract. The provision refers to other EU member states. If your policy comes from a country outside the EU, do not assume that it applies; ask your insurer and check the terms.
Recognition under EU law
Article 21(2) of Ley 17/2009 deals with this case explicitly. If you establish yourself in Spain and already hold equivalent professional liability insurance in another member state in which you are established, that insurance satisfies a Spanish insurance requirement. If you move your business entirely to Spain and are no longer established in the other country, you cannot rely on this. Equivalent means comparable in terms of the insured risk, the amount and the limits of cover. If equivalence is only partial, additional cover up to the Spanish requirements can be demanded. Under paragraph 3, certificates issued by insurers in other member states are recognised.
The provision governs whether you meet an obligation. It does not oblige your insurer back home to pay for losses arising from an activity it has not insured. What your policy covers is determined solely by its territorial scope and by the description of your activity in the contract.
Four questions for your policy from home
- Territorial scope: Does the policy apply worldwide, Europe-wide or only to work carried out from your home country? Check whether losses abroad are covered only for temporary assignments or also for a permanent base abroad.
- Residence and place of business: Does the contract require a residence or place of business in your home country? If so, the move is a change you should report to your insurer before you rely on the cover.
- Applicable law and jurisdiction: Does the policy cover claims brought under Spanish law before a Spanish court, or does it exclude certain legal systems?
- Description of activity: Does the activity described in the contract still match what you do in Spain? If you move from tax advice to general business consulting, the activity you have insured is not the one you carry out.
If your clients are based abroad
Many self-employed expats work from Spain for clients in their home country. Then the question is reversed: does your Spanish policy cover claims under that country’s law before its courts? The answer lies in the policy’s territorial scope, and it needs checking just as carefully as the scope of a policy from home does for Spain.
Which law applies to your client contract is decided first by the contract itself. If it contains a choice of law, that choice generally applies. Where your clients are consumers, the mandatory protective rules of their country of residence still apply. If there is no choice of law, European conflict-of-laws rules determine the applicable law, and the result depends on the individual case, for example on whether your client is a business or a consumer. The limitation period depends on this too. For a specific claim, this is a question for a lawyer. Before you cancel anything, ask both insurers whether your situation is covered.
What the policy should provide: the checklist
Six points in the policy terms show whether a professional liability policy suits you. None of them is about the premium, and each one can decide whether a claim is paid.
Activity check
Check whether the activity described in the policy covers everything you actually do. Only the activity named is insured, and side activities easily fall outside it.
Financial loss check
Check whether pure financial loss, daños patrimoniales puros, is expressly included. Without it, the core of professional liability cover is missing.
Time limits check
Check which model of delimitación temporal applies, how long the retroactive cover is and how long the extended reporting period is.
Limits check
Check the limit per claim, the límite por siniestro, and the maximum for all claims in one year, the límite agregado anual. Also look for any sub-limits for particular risks.
Defence costs check
Check whether lawyers’ fees and court costs are paid on top of the limit of indemnity or count towards it. In a lengthy lawsuit this makes a considerable difference.
Territorial scope check
Check which countries and legal systems the policy applies to. If you work for clients in Germany, Switzerland or the UK, you need this stated explicitly.
Defence against unjustified claims
One part of the cover is easily overlooked when comparing policies, even though in everyday practice it is often the most important. Under Article 74 of the Insurance Contract Act, unless otherwise agreed, the insurer takes on your legal defence against the claim and bears the costs. Many claims are inflated or unfounded. In that case the policy does not pay for the loss but for the lawyer who fends it off.
If the claimant is insured with the same insurer, or there is another conflict of interest, the same article lets you choose whether the insurer keeps the defence or you instruct your own lawyer. The insurer then bears the costs up to the limit agreed in the policy. That limit is a checkpoint of its own.
Excess
A policy may include a franquicia, an amount you bear yourself for each claim. It usually lowers the premium. For smaller claims, the policy then only pays what exceeds the excess. You still have to report the claim. Check whether the excess also applies to defence costs or only to compensation.
What is usually not covered
Professional liability insurance in Spain generally does not cover losses caused intentionally, guarantees and contractual penalties you have taken on by contract, or mistakes that were already known when the policy was taken out. Which exclusions your policy contains is set out in its condiciones generales, the general terms.
Intent
Under Article 19 of the Insurance Contract Act, the insurer does not have to pay if the insured caused the loss in bad faith, mala fe. For liability insurance, Article 76 adds a special feature: the injured party has a direct right of action against the insurer, and in the case of intentional conduct the insurer can then recover the money from the insured. Your client may still be paid, but you then pay it back.
Contractual penalties and guarantees
Liability insurance generally covers your liability under the law, not what you promise on top of that by contract. Check your policy terms on this point. A penalty for every day of delay, a guarantee of a particular result or a contractual waiver of liability caps extends your liability, but not your policy. Check client contracts for such clauses before you sign.
Known circumstances
Check how your policy deals with mistakes you already knew about when you took it out. Expect them to be excluded, even with unlimited retroactive cover, because a known loss is no longer an insurable risk. If you are in a simmering dispute with a client and quickly take out a policy, you are generally not insured for that very case.
Other typical exclusions
Also check how your policy deals with fines and penalties imposed on you personally, damage to your own property, claims from affiliated companies or family members, and activities not described in the policy. Losses from data loss or hacking are a separate risk, and that is what cyber insurance is for.
The questionnaire when you take out the policy
What you state in the insurer’s questionnaire when you take out the policy forms the basis of your cover, and mistakes in it can reduce the payout or cancel it altogether if there is a claim. This is governed by Article 10 of the Insurance Contract Act.
Before the contract is concluded, you must disclose all circumstances known to you that the questionnaire, the cuestionario, asks about. For professional liability insurance these typically include your activity, turnover, the countries your clients are in, previous claims and known disputes. If the insurer does not ask about a circumstance, the law does not require you to disclose it of your own accord.
If the insurer learns of an inaccurate statement, it can rescind the contract within one month. If a loss occurs before it does so, it reduces the payout in proportion to the agreed premium and the premium it would have charged had you answered correctly. In the case of intent or gross negligence, there is no payout at all. Understating your turnover saves premium and can cost you many times that amount when a claim comes in.
If something you stated in the questionnaire changes during the policy term and increases your risk, Article 11 requires you to report it as soon as possible. A Spanish insurer’s questionnaire is usually in Spanish. If your Spanish is shaky, have each question translated rather than guessing. This is where mistakes arise that can no longer be corrected once there is a claim.
When a client makes a claim
As soon as a client accuses you of a mistake and asks for money, report it to your insurer within seven days, unless your policy allows a longer period, and admit nothing to the client. Both determine how well the insurer can defend you.
immediately
Record it, promise nothing
- Record the claim in writing, with the date, the amount and the mistake you are accused of.
- Do not admit liability and do not promise any payment. Check whether your policy excludes such an admission made without the insurer’s consent.
- Secure the documents relating to the job: contract, quotes, emails, delivered versions.
by day 7
Notify the insurer
- This is based on Article 16 of the Insurance Contract Act. Longer periods in your policy take precedence.
- Report the claim even if you think it is unfounded. That is exactly when you need a defence.
- With a claims-made policy, the date on which the client makes the claim decides whether the policy period or the extended reporting period applies. Also check whether your policy requires you to report the claim within that period.
afterwards
The insurer takes over
- The insurer examines the claim and usually takes on the defence.
- You are obliged to cooperate and to provide all information about the case.
- Under Article 76, your client can also contact your insurer directly. You must tell them that the policy exists and what it contains.
Why reporting should not wait
Under Article 16, reporting late does not automatically cost you all your cover. The insurer can, however, claim compensation for the damage the late report causes it, and if you breach your duty to provide information intentionally or through gross negligence, you lose your entitlement. With professional liability insurance the timeframe matters more: if a claim is made shortly before the policy ends, report it immediately, because some policies require notification within the policy period or the extended reporting period.
We support you in English with this notification and throughout the process with the Spanish insurer. That includes the question of whether a letter from your client is already a claim or only the announcement of one.
How high the limit of indemnity should be
The right limit of indemnity depends on your largest realistic loss, on what your clients require and, for regulated professions, on the rules of your profession. There is no figure that fits everyone, and a table of guide values would be misleading given how different professions are.
Three questions help you assess it:
What is the largest job you handle in a year, and what does the client lose if it fails?
What amount do your most important clients or tenders require in writing?
How many claims could arise in one year, and is the annual aggregate limit enough for them?
The third question is easily overlooked. A high limit per claim is of little use if the annual aggregate is the same amount and one mistake affects several clients, such as a faulty update rolled out to ten installations. For regulated professions, it is worth asking the Colegio whether it sets a minimum amount.
How we put together professional and general liability cover for the self-employed and small businesses is shown on our page on business insurance in Mallorca.
We look at your existing policy, whether it is Spanish or from abroad, and tell you which model of time cover it uses, whether the work you actually do is insured and where the gaps are. If you want to switch, we plan the transition with a view to keeping your time cover free of gaps. In English, with no obligation, as an independent broker not tied to any insurer.
Phone: +34 922 94 16 10 or via our contact form.
We advise you on Tenerife, La Palma, Gran Canaria, the Costa Blanca and Mallorca.
Six mistakes self-employed people make in Spain
Most mistakes with professional liability insurance in Spain are not made when a claim comes in, but when the policy is taken out or changed.
Our advice as an independent broker
The most important decision with professional liability insurance in Spain is not about the limit of indemnity but about the time cover. A policy with generous retroactive cover and a clearly defined extended reporting period protects you better than one with twice the limit and one year of retroactive cover.
Typical problems are not missing policies but policies that no longer fit the work: a policy from home whose insurer never heard about the move, an activity description from five years ago, a switch in which a year was lost between the old and the new policy. All three can be sorted out in one conversation before a claim, but not afterwards.
As an independent broker not tied to any insurer, we compare professional liability policies from several Spanish insurers and, if there is a claim, handle communication with the insurer in English. In Mallorca, you can find your contacts for the self-employed and businesses on our page on business insurance in Mallorca. Which other insurance a business there typically needs is summarised in our article Business insurance in Mallorca: what expats and companies should know.
Frequently asked questions
These are the ten questions self-employed expats in Spain ask us most often. The answers are based on the Spanish Insurance Contract Act, the Código Civil and the rules governing each profession.
Is professional liability insurance compulsory for the self-employed in Spain?
There is no general obligation. Under Ley 17/2009, only a law may make the insurance compulsory, and only for activities that pose a direct and specific risk to the health or safety of the client or a third party, or to the client’s financial security. The law requires insurance or an equivalent guarantee, for example, for healthcare professionals in private practice, for mediators and for every professional firm set up as a sociedad profesional. For many other professions, clients or public contracting authorities require it by contract.
What is the difference between professional liability and general liability insurance?
General liability insurance covers injury and property damage that arise from your work, for example when a client falls in your office. Professional liability insurance covers pure financial loss that a client suffers because of a mistake in your professional work, for example wrong advice or a faulty translation. Both can be combined in one policy; what matters is that financial loss is named explicitly.
What does claims made mean in a Spanish policy?
The policy only covers a loss if the claim is made during the policy period, not simply because the mistake happened during that time. Article 73 of the Spanish Insurance Contract Act allows this if the policy meets one of two variants: either it also covers claims made up to at least one year after the contract ends, or its cover reaches back at least one year before the policy starts. The clause must be highlighted in the policy and specifically accepted by you in writing.
Is my professional liability policy from home valid in Spain?
That depends on your contract’s territorial scope. An equivalent policy from another EU member state does satisfy a Spanish insurance requirement if you remain established there; this is governed by Article 21 of Ley 17/2009. Whether it actually covers losses from permanent work carried out from Spain, however, is determined solely by its terms. Report the move to your insurer and get written confirmation of your cover.
How long can a client bring claims against me in Spain?
Under Article 1964 of the Código Civil, contractual claims become time-barred after five years, counted from the moment performance can be demanded. Claims from third parties with no contract become time-barred after one year under Article 1968, counted from when the injured party becomes aware of the harm. Different periods may apply in regions with their own civil law and for contracts governed by foreign law.
Does the RETA self-employed scheme also cover liability claims?
No. Contributions to RETA protect you yourself, for example in the event of illness, accident, incapacity for work and in old age. They do not protect you against claims for damages from your clients. For that you need private liability insurance, and for advisory work professional liability insurance.
How high should the limit of indemnity be?
There is no figure that fits everyone. What counts is your largest realistic loss, the amounts your clients or tenders require and, for regulated professions, any requirement set by your Colegio. Besides the limit per claim, look at the annual aggregate limit as well, because a single mistake can affect several clients at once.
Do I need professional liability insurance for public contracts in Spain?
The contracting authority can require it. Under Article 87 of the Ley de Contratos del Sector Público, professional liability insurance is an accepted way of proving economic and financial standing, and the amount required is stated in the tender documents. If, for contracts that do not require classification, the tender sets no minimum requirements of its own, cover at least equal to the estimated value of the contract can replace proof of turnover for professional services. A binding undertaking to take out the policy within ten working days if you win the contract is then also enough.
What should I do if a client claims damages?
Record the claim in writing, admit nothing and report the case to your insurer within seven days, unless your policy allows a longer period. The insurer generally takes on the defence and its costs. Your client can also contact your insurer directly, and you must tell them that the policy exists and what it contains.
What happens if I gave incorrect information in the questionnaire?
The insurer can rescind the contract within one month of finding out. If a loss occurs before it does so, it reduces the payout in proportion to the agreed premium and the correct premium. In the case of intent or gross negligence, there is no payout at all. Report changes during the policy term that increase your risk as soon as possible.
Note: This guide is for general information only and does not replace legal advice or a review of your specific insurance contract. The information on insurance requirements, limitation periods and the time limits of cover reflects the position as of October 2026 and is based on the linked versions of the Ley 50/1980 de Contrato de Seguro, the Código Civil, Ley 17/2009, Ley 9/2017 de Contratos del Sector Público and the professional laws mentioned. Whether your profession is subject to an insurance requirement follows from the rules governing your profession and, where applicable, from the requirements of your Colegio profesional. What your policy covers follows solely from your condiciones generales and condiciones particulares. For questions about liability under a specific contract, the applicable law or limitation periods, please consult a lawyer. Get in touch if you would like us to review your policy.
