Civil liability insurance

General and professional third-party liability insurance

• Compensable damages

  • Bodily

    Injuries, illnesses or death suffered by natural persons.

  • Materials

    Damage, deterioration or destruction of a thing, as well as the damage caused to animals.

  • Damages

    Economic losses as a direct consequence of bodily or material damage suffered by the person claiming the loss.

• Insurable, main and most common guarantees

  • Basic operating or professional guarantee.

  • Occupational accidents.

  • Products.

  • Tenant's Liability.

  • Defence costs.

  • Civil bonds.

  • Release of expenses.

• Territorial scope

  Unless otherwise agreed, this policy will only cover claims made before the Spanish jurisdiction for events that occurred in Spain, which translate into liabilities or other obligations imposed in accordance with the legal provisions in force in the Spanish territory.

  Usually and depending on the insured activity, the territorial scope can be extended to: all over the world except the United States and Canada.

• Temporal scope

  Unless otherwise agreed, the insurance policy takes effect for damages that occurred for the first time during the period of validity, whose generating event took place after the effective date of the policy and whose claim is reliably communicated to the Insurer during the policy's validity period or within 24 months from the date of termination of the policy.

Third-party liability insurance for company directors and executives

• Main coverage

  • Third-party liability of directors or senior management.

  • Liability for improper labour practises.

  • Insured party's third-party liability for counter claims.

  • Reimbursement to the entity.

• Complementary coverage

  • Legal defence expenses, third-party liability.

  • Bankruptcy guarantee expenses.

  • Administrative fines and sanctions.

  • Research expenses.

  • Emergency and crisis management costs.

  • Advertising and image restitution costs.

  • Extradition expenses.

  • Coverage of expenses in case of contamination.

  • Defence expenses for entity's criminal liability.

• Territorial scope

  Everywhere except the USA and Canada.

• Temporal scope

  Unless otherwise agreed, the policy includes unlimited retroactivity for events unknown to the insured party.

SUMMARY OF INSURANCE CONDITIONS

Data protection liability insurance

• Coverage

  Negligence that does not involve malicious acts.

• Territorial scope

  Unless otherwise agreed, the coverage of the policy will exclusively cover liabilities derived from events that occurred in the European Union, which are called before the competent courts in accordance with Spanish laws and international treaties to which Spain is a party, with the exception of those issued by the courts in the USA and Canada.

• Temporal scope

  This policy covers claims for damages, resulting from actions or omissions, presented in writing and for the first time against the insured party or against the insurer during the term of the policy, known for the first time by the insured party after the entering into effect of the policy established in particular conditions and reported to the insurer during the 12 months following the date of cancellation of the policy.

Policyholder

Third-party liability Insurance is only available for Bankinter customers that are corporates or institutions. Depending on the type of third-party liability insurance, self-employed workers are also eligible.

Economic terms and conditions

Annually renewable insurance, with the possibility of making payments in instalments.

Depending on the type of third-party liability insurance arranged, the insurance company may apply a surcharge to the annual premium in the event of split payment (half-yearly or quarterly).

Limits

Depending on the characteristics of the risk and the underwriting rules of the insurance company, it is possible to arrange guarantees with a maximum indemnity limit of up to €4,000,000 per claim and insurance annuity, except for the third-party liability insurance of directors and managers where the approximate maximum is €3,000,000.

Who is considered to be an “insured party”?

To the person who owns the interest exposed to the risk to whom the rights derived from the contract correspond, if applicable. The insured party may assume the obligations and duties of the policyholder.

When the insured party is a legal entity, its directors and employees will also have the status of insured party while they act within the scope of their dependence.

In the specific case of third-party liability insurance for directors and executives, the persons we list will be considered insured parties, without having to include them in a nominal way:

• (a) Director or executive.

• (b) Employee, but only while performing company management or supervision tasks; with respect to a complaint alleging improper employment practice; or when they are being co-sued together with a director or executive of the company due to said employee's alleged assistance or joint involvement in a management error.

• (c) Any of the following persons while performing executive or management duties. The risk manager of the policyholder; the secretary and deputy secretary of the board of directors of the policyholder. But only to the extent that the insured party is acting for or on behalf of the company (or on behalf of the policyholder in relation to the persons indicated in letter c) in any of the aforementioned duties.

• (d) Non-executive director, I understand as such the individual acting as a member of the board of directors or member of the supervisory body, performing supervisory and not management duties and who is not an employee of the company.

• (e) The spouse, legally recognised common-law partner, hereditary estate, or the heirs, legal representatives or executors of (a), (b) or (c), although only in their capacity as such.

• (f) Insured persons who, prior to the expiration or non-renewal of the insurance period, retired or ceased to perform the duties under which they were considered insured for any reason, except for reasons of suspension, removal, dismissal or disqualification, and who do not subsequently assume a position under which they are considered an insured person.

The term“ insured party” does not include bankruptcy administrators, auditors, liquidators, controllers, wealth administrators, judicial administrators, provisional administrators appointed by any competent authority, trustees, mortgage creditors with possession of the property, or any other similar position other than company employee.

Who is considered a “third party”?

Any individual or legal entity other than:

• The policyholder, the insured party or the party that caused the claim.

• Family members who live with the people listed in the previous section.

• The partners and directors of the policyholder and the insured party.

Who is considered a director or executive?

Any natural person who has been duly appointed or elected in accordance with the law and the statutes for the positions of administrator, director, executive, manager or member of the management committee (or equivalent body), who performs senior management duties or holds management and governance powers within the company, as well as any natural person who is the permanent representative of a legal entity managing the company, or any natural person duly appointed or elected, pursuant to foreign legislation, for similar positions.

All company employees who hold (de facto or in practice) senior management duties within the company and all company directors, executives or employees whose responsibility as a de facto director of the company is established by a court.

What types of damages are compensable?

The damages compensable through a third-party liability policy are:

• Bodily

  Injuries, illnesses or death suffered by natural persons.

• Materials

  The damage, deterioration or destruction of a thing, as well as the damage caused to animals.

• Damages

  Economic losses as a direct consequence of bodily or material damage suffered by the claimant.

What is a claim?

A claim is considered to be the event whose harmful economic consequences are covered by the policy. The damages as a whole derived from a same event constitutes a single claim.

What do I do if I want to submit a claim?

If you need to submit a claim, call Bankinter Seguros Generales customer service on: 91 836 62 25.

What are defence expenses and civil bonds?

With the limit of the insured sum stipulated in the particular conditions, and provided that the object of the claim is included in the coverage of the policy, the following are guaranteed:

• The constitution of the judicial bonds required to guarantee the civil results of the procedure.

• The legal costs, which will be paid in the same proportion existing between the compensation to be paid by the insurer, in accordance with the provisions of the policy, and the total amount of the insured party's liability in the claim.

• The insurer will assume the legal administration of the claim of the injured party, and will bear the defence expenses that are incurred. The insured party must provide the necessary collaboration with the legal administration assumed by the insurer.

• When the insured party appoints their own defence, they will exclusively bare any resulting legal expenses.

• The aforementioned benefits will also apply in the case of criminal proceedings against the insured party that result from the exercise of the activity covered by the insurance, with the prior consent of the defendant. If the insured party appoints their own defence, the costs and expenses arising thereof will be exclusively borne by said party.

• If a conviction arises from the legal proceedings against the insured party, the insurer will decide whether to appeal to the competent High Court; if the appeal is considered inadmissible, the interested party will be notified, leaving the latter free to file an appeal on their own account. In the latter case, if the appeal produces a ruling favourable to the interests of the insurer, reducing the compensation payable by the same, the latter will be obliged to bare the expenses resulting from said appeal.

• When there is a conflict between the insured party and the insurer due to the latter having to support interests in the claim contrary to the defence of the insured party, the insurer will inform the insured party, without prejudice to carrying out those procedures that, due to their urgent nature, are necessary for the defence. In this case, the insured party may choose between the insurer continuing with the legal administration or entrusting their defence to another person. In the latter case, the insurer will be obliged to pay the expenses of such legal administration up to the limit of 6,000 euros.

• When an amicable agreement is reached in the civil part, the insurer may decide whether or not to defend the criminal part, being subject to the prior consent of the defendant.

In the third-party liability insurance for company directors and executives, what is understood by bond?

Bond will be understood as:

• The constitution of civil bonds that have been imposed by court decision on an insured natural person to guarantee possible third-party liabilities.

• The expenses that an insured natural person incurs due to the constitution and maintenance of the bonds imposed in criminal proceedings by judicial decision to guarantee their provisional release.

• The expenses involved in arranging and maintaining a bank guarantee provided as a substitutional surety if precautionary measures have been imposed on an insured person by judicial decision in civil proceedings to ensure effective compliance with the ruling issued against the insured party.