When hiring civil liability insurance, it is essential to take into account locative civil liability, since there are many civil liability insurance that do not necessarily include this clause, which makes this type of clause largely unknown to professionals. who decide to start their business and choose to insure it.
When it is intended to contract a civil liability insurance, it is best to have the services of a good insurance consultancy, such is the case of Euroteide Seguros. Euroteide Seguros is an insurance consultancy that operates in the southern part of Tenerife and sells different types of policies, from Life insurances, until Insurance Policies for the Self-Employed o Liability insurance. With more than 20 years of experience in the sector, Euroteide Seguros will know how to guide you to make the right choice for your insurance policy.
What is locative civil liability
La locative civil liability is a specific guarantee regarding the safety of the facilities of a specific premises of general civil liability which aims to compensation for damages produced in a rented premises, both to carry out an economic activity and to celebrate an event in a timely manner, to a third person.
This type of guarantee is usually included on a regular basis in general civil liability insurance, however, it does not have to be that way. Although it is a great unknown, the truth is that it has great importance, since, when renting a premises, it is very common that this type of civil liability clause is required.
What insurance includes locative civil liability
The locative civil liability It is usually a clause of general civil liability insurance, as well as multi-risk insurance in which damages to businesses, homes, communities of neighbors or owners, industries, and a long etcetera are covered. However, although it is usual for this type of insurance to include this clause, it is necessary to check it, since there are certain policies that do not include it and that will have to be contracted separately as an additional or complementary guarantee.
In addition, not to be confused with property liability, a guarantee that can also be included in civil liability insurance or multi-risk insurance. Thus, real estate civil liability covers the owner of the property, unlike locative civil liability, which covers the tenant of a commercial premises or industrial warehouse.
On the other hand, and although it is normal for this coverage to be a clause of other Insurance, it is also possible to contract a specific insurance for locative civil liability.
The importance of including a locative liability clause in our Insurance policy
Including the rental element in our liability insurance policy is certainly important. The truth is that there are many insurance companies that will cover the damages caused as a result of a fire, explosion or due to the action of water to the machinery, but if the company or the entrepreneur has not contracted an insurance with a locative civil liability clause, it will be the company which will have to deal with the repair of the damage caused by the accident to the commercial premises or industrial warehouse in which it will carry out its business activity.
It is therefore of great importance to check that the insurance we contract includes the rental element, especially in those cases in which commercial or professional activities are carried out that involve certain risks for the premises or its facilities.
In summary, It will be advisable to contract this clause in the following cases:
- For the owners of a building intended for the use of third parties.
- For the lessor of a premises where a profit-making activity is to be carried out.
- For the lessor of a house or apartment in which a profit-making activity is carried out.
Practical example of locative liability
Let's put a example, since it is the best way to understand what it consists of and what is the importance of locative civil liability. Let's imagine that a company rents an industrial warehouse to carry out its commercial activity.
As a general rule, The company will have the obligation to contract a civil liability insurance to be able to rent the industrial warehouse, so that the compensation for damages caused to third parties in the development of commercial activity is covered. However, a few months after the opening of the industrial building, and as a consequence of the development of the company's commercial activity, a fire breaks out that causes significant damage to the facilities and the structure of the industrial building.
In this case, if the civil liability insurance had a locative civil liability clause, the liability derived from the commercial activity in this particular case would be covered. In other words, the locative liability clause will cover the damages caused in the industrial warehouse as a result of carrying out a commercial activity.
In any case, and although the causes covered by this clause will depend on the general and particular conditions of the policy in question, the truth is that The Insurances that include a tenancy liability clause will cover the damages caused to the rented premises as a consequence of the following events:
- Damage caused by the action of water, such is the case of floods, humidity or leaks. However, this coverage is only included by some insurance companies.
Outside of the above causes, the leasehold liability clause does not cover damage to the structure and facilities of the business premises or its content (furniture, personal effects, etc.).
Undoubtedly, when we take out civil liability insurance it is essential to take into account the locative civil liability clause, so it is very important to check that the insurance includes this clause and, if not, hire it.
In any case, it is best to have the experience of experts in the insurance sector to guide us and help us find the civil liability insurance policy that best suits our activity and specific needs.
Euroteide Seguros is an Insurance consultancy based in Tenerife and that, with more than 24 years of experience in the field of Insurance, has the necessary experience to guide us correctly in choosing the most appropriate civil liability insurance.