Find out when you should purchase liability insurance.

If you own a car, you know that it needs insurance for civil liability to drive in compliance with the law.

However, you may not be aware that this protection is also required in other situations, particularly for businesses.

If you own a business, you should know that while most insurance companies offer the minimum coverage required by law, there are several brokers who already present their clients with the option of supplementing this basic plan with other optional coverages.

• Keep in mind that, specifically in the following situations, a mandatory basic plan does not cover:
• Compensation resulting from fines, fees, or the payment of bail;
• Damage caused by acts of terrorism, war, civil unrest, or strikes, among others;
• Losses resulting from accidents that are required to be covered by another type of mandatory insurance established by law, such as workers’ compensation.

Learn More About Liability Insurance

What does civil liability insurance cover?

This coverage protects the insured when they cause damage to third parties. With liability insurance, you know that the insurer will pay the compensation owed to the injured parties in the event of an accident.

People who engage in activities considered high-risk (such as industrial work, energy production, the assembly of certain types of equipment, hunting, etc.), certain independent professions (such as law or insurance brokerage), or even in more common, everyday situations (such as one’s own home or pets) should have liability insurance.

Companies are also required to implement this protection plan, both for their operations and for their employees. Liability insurance for your business covers damages caused accidentally during the course of business or arising from the performance of professional duties.

How can you tell if you need this protection plan?

In some situations, these plans are mandatory, and in others, they are optional. On the website of the Insurance and Pension Funds Supervisory Authority (ASF), you will find a list of the situations in which they are required by law.

Even in cases where this insurance is not required, it is wise to assess the risks you face and determine whether investing in safety is worth it.

Through EXS Seguros, you can explore—with no obligation—the coverage options offered by each insurance company and determine which products are the most suitable and competitive for each situation.

In certain situations, you may find a more comprehensive liability insurance policy with additional coverage that enhances protection for your business at every level.