Running a Small Business in Spain: Insurance Essentials for Expats

Starting your own business or working as a freelancer in Spain can be an exciting chapter for many expatriates. Whether it’s a café, consultancy, or online store, being your own boss comes with many rewards — but also responsibilities. One of the most important — yet often overlooked — is insurance.

Having the right business insurance is essential to protect your investment, avoid unexpected costs, and comply with Spanish regulations. Here’s a straightforward guide to the key types of insurance every expat entrepreneur should consider.

Types of insurance you need to know

1. Public liability insurance (Responsabilidad Civil)
This covers you against claims if a third party suffers injury or property damage linked to your business activities. For example, if a customer slips in your shop or if your service causes accidental damage, this insurance helps cover legal costs and compensation. 

With Generali Expatriates, cover of up to €1,000,000 is available depending on your needs.

2. Commercial property insurance  (for premises, contents and stock)
If you rent or own business premises, property insurance protects your building (if owned) and contents such as equipment, stock, and furniture against risks like fire, theft, or flooding.

3. Business interruption insurance
In case your business must close temporarily due to damage or unforeseen events, this insurance can cover lost income and ongoing expenses during the downtime. 

Generali Expatriates offers protection for loss of profit, daily compensation of up to €600, and cover for permanent overheads — up to four times the insured contents value and a maximum of €300,000.

4. Employer’s liability insurance
If you have employees, this insurance covers claims arising from work-related injuries or illnesses. 

Generali Expatriates includes employer liability under its civil liability cover.

Why is business insurance important for expats?

As an expatriate entrepreneur in Spain, you may face additional challenges such as language barriers, unfamiliar legal systems, and different business practices. Insurance helps you manage these risks while complying with Spanish business regulations.

With Generali Expatriates, you benefit from:

• Tailored policies based on your type of business
• Optional guarantees to customise your cover
• Personalised, multilingual guidance always available through your local broker or agent

Depending on your sector or business size, Spanish regulations may require specific types of insurance — especially if you run a customer-facing business. Even if not compulsory, insurance is a wise investment to avoid costly claims or legal disputes.

Business insurance tailored to your needs

Generali Expatriates offers insurance solutions specifically designed for small businesses, freelancers and service providers in Spain — including shops, offices, and other commercial premises that don’t involve manufacturing or industrial activities.

With the flexibility to adapt cover to your type of activity, Generali Expatriates offers:

• A wide range of optional coverages, including theft, all-risk accidental damage, and legal protection.
• Protection for your property (building, contents and stock) and your financial stability (liability and loss of income).
• Competitive premiums tailored to your business.

Among the available type of cover:

• Fire, explosion, lightning, natural events, vandalism
• Water damage, electrical damage, glass breakage
• 24-hour assistance and legal protection
• Business interruption (including daily compensation)
• Public and employer’s liability
• Optional cover for money kept on the premises, in safes, or during transport — subject to policy conditions.

Whether you’re running a language school, beauty salon, café, pet services, holiday rental business, e-commerce store, or offering professional advice as a consultant, there’s likely a tailored insurance solution — as long as your activity qualifies under eligible categories.

Tips for choosing the right business insurance in Spain

• Assess your risks: What could go wrong in your daily operations?
• Check legal requirements for your business type or sector
• Look for expat-friendly policies with multilingual support
• Choose providers experienced with international clients in Spain
• Review and update your policy regularly as your business evolves

Protect your business in Spain with confidence

Running a business in a new country is a big step — but with the right support and protection, you can focus on growing your venture.
Generali Expatriates offers flexible business insurance policies designed with expats in mind — helping you feel secure, understood and well-supported from the start.

Find your nearest broker or agent here, or request a quote today to get the right insurance for your business future.