Is it mandatory for all self-employed workers?
Not for everyone, but for far more people than realise it. It is required by law or by professional association in activities such as construction and renovations, installers, healthcare professionals, lawyers, architects, property administrators, travel agencies or transport. And even if your activity does not require it, many clients — especially companies and public bodies — demand it as a condition for hiring you.
The calculation that matters is not the legal one but the practical one: a self-employed person is liable for the damage they cause with all their present and future assets. A professional error or an accident at a client's home can mean a claim that wipes out years of work.
How much it costs by activity
For low-risk activities (consulting, design, retail) there are policies from €100-200 a year. Trades with physical risk — plumbers, electricians, builders — sit between €200 and €500, and professions with heavy professional liability (healthcare workers, engineers who sign off projects) can exceed €500-1,000 depending on the sum insured.
It is also 100% deductible in your IRPF income tax as a business expense, so the real after-tax cost is considerably lower than the premium.
What it covers and what it doesn't
General liability covers material damage and personal injury to third parties caused by your activity: the pipe that bursts after your repair, a client slipping in your premises, damage at a client's home while you work. Professional liability covers purely professional errors — bad advice, a miscalculated project — and it is not always included: you have to ask for it expressly.
It does not cover damage to your own equipment or your own injuries (that is what collective agreement insurance or a personal accident policy is for), nor work done before the policy was taken out.
Every activity needs different sums and covers — tell us what you do and we will prepare quotes with several insurers, free and with no obligation.