The Ultimate Guide to Managing Business Risks in Spain for UK Directors

In short: a Spanish operation is usually insured by several local providers who each see one part of the picture. Policies renew on their own, values drift, and the board in the UK rarely sees the detail. The risks are manageable, but only if someone looks at the whole programme against how the business really works today.

Who this guide is for

This guide is for directors, CFOs and managing directors of UK companies that own a subsidiary, a branch, a warehouse, an office or property in Spain, and for British founders running a Spanish company. It explains how protection works on the Spanish side and where the usual gaps are.

Why insurance in Spain works differently

The underlying ideas are familiar, but the way the market operates is not. Four differences matter most to a UK board:

• Several channels at once. Spanish companies often hold policies placed through an exclusive agent of one insurer, an independent broker and the bank that granted a loan. Nobody is responsible for the overall picture.
• Documents in Spanish. What is really covered sits in the particular conditions (condiciones particulares), special clauses and endorsements. These are rarely read at board level.
• Tacit renewal. Policies usually renew automatically every year. To stop a renewal, the policyholder generally has to give notice at least one month before it ends.
• Bank-linked insurance. Loans and leases frequently come with insurance that is accepted without comparing it to existing cover.

The cover a Spanish business usually needs

Every company is different, but most reviews start with the same core:

• Liability. General third-party liability, plus product or professional liability where relevant, with limits that match client contracts.
• Property. Buildings (continente), contents (contenido) and stock (existencias), insured at realistic values.
• Business interruption. Loss of profit while the business recovers, with an indemnity period that reflects how long rebuilding really takes.
• Directors’ liability (D&O). Directors of Spanish companies can be personally liable in certain situations under Spanish company law.
• People. Accident cover required by many collective agreements, plus key-person protection where the business depends on a few people.
• Motor, cyber and specific risks depending on the activity.

Some of these are compulsory by law or by the applicable collective agreement; others are simply prudent. The only reliable way to know is to review the activity, the premises and the agreement that applies.

The gaps we find most often

• Out-of-date sums insured. Under the proportional rule (regla proporcional), if property is insured for less than its real value, a loss may only be paid in proportion.
• An activity description that no longer matches the business. New lines, new processes or new storage rarely reach the policy wording.
• Property data that does not match the Catastro. Floor area, construction year or use that differ from the Spanish property register can become an argument in a claim.
• Duplicated or overlapping cover between a UK group programme, local policies and bank policies.
• Exclusions nobody has read. Sandwich panels, flammable stock or specific activities can change cover significantly.
• Certificates that take weeks. Clients and tenders increasingly ask for proof of liability cover at short notice.

Directors’ responsibilities

Being a director of a Spanish company brings duties under Spanish law, wherever the director lives. It is worth checking that directors’ and officers’ cover exists for the Spanish entity, that it includes directors based in both countries, and that someone in Spain would coordinate a claim. This guide is general information, not legal advice: your Spanish lawyer can confirm how the rules apply to your company.

When something goes wrong: claims in Spain

Claims are where an insurance programme is really tested. Three points make the biggest difference:

• Notify quickly. The policyholder generally has seven days from becoming aware of a loss to notify the insurer, unless the policy allows longer.
• Preserve evidence. Photographs, inventories, invoices and receipts decide how much is recovered. Do not repair or dispose of damaged items before the loss adjuster has seen them, unless it is needed to limit the damage.
• Have someone on your side. The loss adjuster (perito) appointed by the insurer works for the insurer. A large claim deserves someone who represents the company.

Managing it all from the UK

Distance is the real risk multiplier. Renewals pass without review, local staff are not sure who decides, and the board receives information late or in Spanish. A simple routine solves most of it:

1. One named person responsible for risk and insurance in Spain.
2. A single document centre with every policy, receipt and certificate.
3. A calendar of renewals reviewed at least two months in advance.
4. An annual review of values, activity and exposures, before renewals.
5. A one-page crisis protocol for the Spanish team.

A practical checklist

We have turned the points in this guide into a 25-question self-assessment for boards. It takes fifteen minutes and tells you whether your Spanish operation is under control, has gaps worth reviewing, or is exposed.

How BLINDAJE360 can help

BLINDAJE360 is an independent, external risk department for companies doing business in Spain. We audit what you have, coordinate any changes with your current broker, bank or insurer, and follow up as the business changes. We are paid for consultancy, not commission, so our advice can be to keep exactly what you have. Meetings and reports are in English.

Frequently asked questions

Is insurance in Spain very different from the UK?

The principles are similar, but the market works differently: policies are written in Spanish, renew tacitly, and are often placed through exclusive agents, brokers or banks at the same time. Specific rules, such as notification deadlines and the proportional rule for under-insurance, come from Spanish insurance law.

Which insurances are compulsory for a business in Spain?

It depends on the activity. Motor insurance is compulsory, some professions and activities require liability cover, and many collective agreements (convenios colectivos) require accident insurance for employees. A review of your activity and agreement is the only reliable answer.

How long do we have to report a claim in Spain?

Generally seven days from becoming aware of the loss, unless the policy allows a longer period. Late notification can affect how a claim is handled, so local staff should know the procedure.

Can we cancel a Spanish policy at renewal?

Spanish policies usually renew automatically. The policyholder can generally stop the renewal by giving written notice at least one month before the end of the current period.

Do we need to change our broker to get an independent review?

No. An independent review looks at what you already have. The outcome can perfectly well be to keep your broker, your insurer and your policies.

This guide is general information and does not replace legal advice or a review of your specific policies. Last reviewed: October 2026.