Business insurance in Mallorca

A business in Mallorca faces very different risks depending on what it does: a kitchen fire has little to do with an accident on a building site or goods damaged in transit. A sound insurance programme is built in layers: first the damage you may cause to others, then your assets and your activity, and finally the people who work with you. This guide helps you review each layer and know what to ask before you sign.

Business risks and the insurance that responds to each

The right combination depends on your activity, premises and number of employees. A good starting point is a review of what you already have.

Liability: the first layer

Liability insurance covers, within the agreed limits, damage you cause to third parties in the course of your business, along with associated legal defence. Depending on your business, more than one type may matter:

• Operations liability: damage that occurs on your premises or in the normal course of activity, such as a customer who is injured.
• Employer's liability: claims from your own employees after a workplace accident.
• Products and completed work liability: damage that comes to light after you deliver a product or finish a job.
• Professional liability: errors or negligence when providing a professional service.

For some activities this cover can be required by law or by contract. Check what your customers, your landlord or the authorities ask of you.

Multi-risk and trade cover: protecting premises and contents

Multi-risk insurance protects your business assets against the main risks: fire, water damage, theft, weather events and other material damage, depending on what you choose. There are packages for small and medium-sized businesses and all-risk property damage options for more complex companies.

In a shop, think carefully about what is insured and for how much:

• The building (if you own it) and the contents (furniture, fittings, machinery).
• Stock and goods, which can vary a lot in high season.
• Operations liability.
• Associated services, such as temporary premises if the business becomes unusable after a claim, depending on the policy.

A frequent mistake is insuring sums below the real value. After a claim, that gap can reduce the payout. Review your sums insured at least once a year.

Business continuity: planning for the day after

A claim does not only damage assets; it can also stop activity. Ask specifically what happens to income and fixed costs while repairs are made. Some policies include temporary premises, and there are separate covers for loss of profits or business interruption. Tell us how your business works and we will look at what makes sense for you.

Protecting key people is part of continuity too: a temporary incapacity allowance helps offset lost income when a self-employed person or partner cannot work for a period.

Transporting goods

If your company moves its own or other people's goods, two concepts are often confused:

• Cargo insurance protects the value of what is shipped against loss or damage in transit by road, sea or air, at the level of cover chosen (from basic to all-risk).
• Carrier's liability insurance pays for damage to the cargo when the carrier is liable, with limits set by regulations for each mode of transport.

In international trade, insurance is also part of the customs and shipping process. Ask us if your activity requires it. See our transport insurance page for details.

Health and accident cover for your team

Collective agreements and company arrangements often provide benefits for death and disability from accidents. Group accident insurance helps meet those commitments and can be extended with other cover. Private health care is also a benefit many companies offer. See our health and accident and health insurance pages.

Examples by sector in Mallorca

These examples are illustrative: they show what is usually reviewed in each activity and do not describe specific clients.

Hospitality and restaurants

Kitchens with fire risk, intensive water and electrical installations, customers coming and going all day. Typical checks: multi-risk with contents and equipment properly valued, operations liability for possible harm to customers, and temporary premises after a serious claim. Seasonality changes stock and staff through the year, and the policy should reflect it.

Shops and retail

Furniture, window displays, goods and public access. Trade insurance with stock at the right sum, liability and theft cover matter here. For high-value shops such as jewellers there are specific options that insure stock on a first-loss basis.

Construction, renovation and trades

Work away from the premises, machinery, tools and people on site. Completed work liability and employer's liability are key, along with accident cover for workers under the applicable agreement.

Marine sector

Boatyards, repairers, winter storage companies, yacht clubs and marinas have their own risks, both on third-party vessels and on facilities. Read our boat insurance guide for Mallorca and the nautical insurance page.

Transport and distribution

Vans and lorries, third-party goods and routes that sometimes include ferries. Cargo cover, carrier liability and damage to your own vehicles are reviewed.

Farming and food production

For agricultural and livestock activities there are specific policies that cover production against weather and other risks. Ask us if it applies to you.

Review your business insurance in ten minutes

1. Activity: does the policy describe what you do today, including new lines?
2. Sums insured: do they reflect the real value of contents, machinery and stock?
3. Liability: are the limits consistent with your size and with what your customers require?
4. People: is there accident cover for your team and an allowance for key people?
5. Goods in transit: are they insured while moving?
6. Excesses and exclusions: do you know what you pay in a typical claim?
7. Renewal dates: are renewals in your calendar?

A close team, in three offices

We look after businesses across the island from our offices in Palma (Avenida Compte Sallent, 20 bajos, tel. 971 72 04 43), Inca (calle Bartomeu Coc, 14, tel. 971 88 35 25) and Sóller (calle de Bauzá, 6, tel. 971 63 34 78). We are an exclusive Generali agency and work with them to tailor each policy to your business. If you are self-employed, see our page on insurance for the self-employed.

Business insurance FAQ