Key Points
Correctly defining SME insurance is not about taking out more policies, but about building protection that is coherent with the reality of the business. According to MAPFRE’s Radiografía del seguro para las pymes y los autónomos, claims frequency among small and medium-sized enterprises increased by 10.8% in 2023, with average costs of €7,300 per fire claim, €8,000 for business interruption and up to €13,700 for associated personal injury. Despite this, only 1 in 10 Spanish SMEs is fully protected against its insurable risks.
Not all companies face the same risks or are subject to the same requirements. An industrial SME, a service firm, a professional practice or a retailer all have different exposures and, therefore, different insurance needs. For this reason, the answer to which insurance policies a company should take out cannot be based on a generic list, but on an analysis tailored to its activity, structure and level of risk exposure.
It is important to start with an essential premise: in Spain there is no single mandatory insurance package for all SMEs. Obligations vary according to the activity carried out or the requirements imposed by certain contracts.
In this context, insurance should not be understood solely as a formal obligation, but as a strategic business protection tool: its purpose is to reduce the financial impact of a claim, preserve operational continuity and strengthen business stability in scenarios that may seriously compromise short- and long-term sustainability and development.
“Many companies are not truly underprotected because they lack insurance, but because their covers are poorly structured or insufficiently adapted to their activity. The real value lies in designing protection aligned with the actual risks of the business.” — Carmen de Haro, Retail Director at RibéSalat
Why an SME should review its insurance beyond legal compliance
In many cases, insurance reviews are approached solely from a compliance perspective: what must be taken out to operate in accordance with regulation or sector requirements. However, this approach is insufficient from a business risk management perspective.
An SME may comply with all its legal obligations and still remain exposed to situations with a high financial or operational impact. A third-party claim, significant damage to premises, an interruption of activity or a digital incident can generate consequences far more severe than expected. To explore how to identify these risks systematically, see our guide to business risk identification.
Before analysing which policies should be taken out, it is advisable to ask a few basic questions:
- Which risks could directly affect business continuity?
- What damage could the company cause to third parties in the course of its activity?
- What would be the impact of a temporary interruption of operations?
- Is there dependence on digital systems, sensitive information or connected processes?
- Does the current protection only cover tangible assets, or also the company’s ability to continue operating?
This type of reflection helps to organise priorities and approach SME insurance from a more robust perspective: not insuring by inertia, but according to the real risk and its potential impact on the business.
Which insurance policies are mandatory for an SME in Spain?
One of the most common questions is which insurance policies are mandatory for an SME. The answer depends on the type of activity and the specific circumstances of each company. There is no single list of compulsory insurance policies applicable to all Spanish SMEs, but there are points that should always be reviewed.
Car insurance
If the company owns vehicles or uses them in its activity, taking out motor third-party liability insurance is a legal requirement without exception, established under Royal Legislative Decree 8/2004 of 29 October. Where a company manages several vehicles, it may be more efficient to group them under one arrangement. For more information, see our article on what fleet insurance is and how it works.
Collective bargaining agreement accident insurance
When a company has employees, it is essential to review the applicable collective bargaining agreement. In many sectors, the agreement requires companies to take out workplace accident insurance covering contingencies such as death or disability resulting from an occupational accident. This is one of the first checks any SME with employees should carry out.
Mandatory liability insurance in certain activities
Corporate liability insurance is not generally mandatory for all companies, but it is required in certain regulated sectors: architecture, engineering, medicine, private security activities and electrical installations, among others. In addition, even where there is no express legal obligation, it is often required in public contracts, tenders or relationships with large clients. See our full guide on the need for liability insurance for SMEs and the self-employed.
Other compulsory covers according to activity
There are sectors in which regulation requires specific SME insurance covers: construction, recreational activities, travel agencies, goods transport or activities subject to environmental REACH regulation, among others. Each case should be reviewed according to the activity, regulatory requirements and current contractual obligations. If you are unsure where to start, our article on corporate insurance and integrated risk management provides an overview.
“One of the most common mistakes is to assume that all SMEs start from the same insurance needs. The starting point must always be the activity and the specific level of exposure of each company.” — Carmen de Haro, RibéSalat
Recommended SME insurance to protect your activty
Beyond legal obligations, there are covers that should be assessed as a priority by most small and medium-sized enterprises. They will not all be necessary in every case, but they should be analysed strategically before being ruled out.
Liability insurance: protection against third-party claims
Liability insurance is one of the most relevant covers in the business environment. It protects the company against third-party claims for damage or loss caused in the course of its activity. According to industry data, only 26% of Spanish SMEs have general liability insurance, compared with a global average of 43%, revealing a significant protection gap.
Not all liabilities are equivalent. Depending on the type of business, it may be necessary to assess different types of cover: general liability, professional indemnity, product liability and employers’ liability, among others.
Multi-risk insurance for SMEs: the basis of asset protection
Commercial multi-risk insurance often forms the basis of asset protection for many SMEs. It may include cover for fire, water damage, theft, electrical damage and machinery breakdown. MAPFRE data place the average cost of a fire claim among Spanish SMEs at €7,300 and the average cost of business interruption at €8,000.
Its effectiveness depends largely on insured sums being correctly defined. When declared values do not reflect reality—common in companies that have grown or modernised their facilities—underinsurance may arise and limit the policy response. To understand how the cost of these covers is calculated, see our article on how much business insurance costs.
Business interruption insurance: continuity after a loss
This is one of the covers with the greatest strategic value and, at the same time, one of the most frequently neglected. The real impact of a loss does not lie only in the material damage, but in the inability to continue operating normally. If an SME interrupts its activity for days or weeks, it will still have to meet its fixed costs while no longer generating income.
Business interruption or loss of profits insurance responds precisely to this scenario. For companies with lean structures or high dependence on day-to-day operations, it can be decisive in maintaining financial balance during the recovery period. Without this cover, even a moderate loss can compromise business viability.
Cyber risk insurance: protection against the growing digital threat
In 2025, cyberattacks in Spain increased by 35%, exceeding 45,000 incidents per day. More than 70% of these attacks target SMEs, and 60% of companies that suffer a serious incident close within the following six months. The average cost of a cyberattack for a Spanish SME ranges from €2,500 to €60,000.
A cyber incident is no longer just a technical problem: it can result in operational disruption, loss of sensitive information, impact on customers or extraordinary recovery costs. To understand the types of threats that exist and how to prevent them, see our articles on what cyber risk is and how it can affect your company and on the main types of cyber risk.
“For years, digital risk was perceived as a concern unrelated to many SMEs. Today it is part of their real exposure and, in many cases, can have a direct impact on operations and client relationships.” — Carmen de Haro, Retail Director at RibéSalat
D&O insurance for directors and officers
D&O (Directors & Officers) insurance protects directors and senior managers against claims arising from management decisions: errors, breaches of fiduciary duties or liability towards creditors, shareholders or employees. It is especially advisable for companies with several partners, active governing bodies or growth processes.
Its main value lies in protecting the personal assets of those who assume management responsibilities, strengthening legal certainty in decision-making. In an environment of increasing regulatory pressure—tax, employment, environmental and data protection—this cover is becoming increasingly relevant. Further information is available in our article on D&O insurance and directors’ liability.
Other covers to assess depending on the activity
Depending on the activity and business model, it may also be advisable to analyse:
- Credit insurance: where there is significant exposure to customer non-payment.
- Surety insurance: in operations requiring contractual obligations to be guaranteed.
- Transport or goods-in-transit insurance: in companies with logistics activity. See RibéSalat’s fleet and transport section.
- Legal expenses insurance: in environments with greater contractual complexity or employment-related disputes.
How to prioritise SME insurance: a three-level approach
Not all covers have the same urgency. To organise priorities properly, it is useful to follow a structured process:
1. Review mandatory covers first
Everything required by law, collective bargaining agreement, activity licence, contract or sector regulation should be analysed first. Operating without legally required cover can lead to administrative penalties, contract nullity or personal liability for directors. If you are unsure which professional can help with this analysis, see our article on the role and value of an insurance broker.
2. Identify the risks that could compromise business continuity
This level typically includes covers such as general liability, professional indemnity, multi-risk, business interruption and cyber risk insurance. The key criterion is severity: could this risk compromise the viability of the business? If the answer is yes, the cover should be a priority.
3. Analyse covers that protect management and business development
This includes policies such as D&O, credit insurance, surety insurance and other solutions linked to growth or corporate complexity. This level is particularly relevant for companies that are scaling, internationalising or increasing their contractual exposure.
4. Analyse insurance that adds value for employees
In addition to protecting the business, some policies can help attract and retain talent. Covers such as health, life or group accident insurance strengthen the employee value proposition, improve wellbeing and increase engagement with the company. In an increasingly competitive labour market, these benefits can become a differentiating factor in retaining key professionals.
“Protecting a company also means protecting the people who are part of it. Insurance benefits are increasingly a tool for attracting and retaining talent.” — Carmen de Haro, Retail Director at RibéSalat
Common mistakes when taking out SME insurance
1. Not checking whether liability cover responds to the actual activity
A generic liability policy may not properly address certain exposures if it is not well adapted to the type of company, activity and real operations. The same activity can generate very different liabilities depending on the specific model, scope or third parties involved.
2. Keeping insured sums out of date
Business growth—such as increased turnover, the incorporation of new equipment, higher stock levels or improved facilities—can make insured values obsolete. Underinsurance is one of the main causes of dissatisfaction with multi-risk policies after a claim.
3. Failing to consider business interruption
Many companies insure material damage, but not the financial impact resulting from an interruption of activity. The average cost of business interruption for a Spanish SME is around €8,000, excluding lost income during the recovery period.
4. Underestimating digital risk
In 2025, 67% of Spanish SMEs experienced at least one cybersecurity incident, but only 38% had a structured response plan (Libertia, 2025). SMEs are a primary target for cyberattacks precisely because they tend to have lower levels of protection. You can view our tailored cybersecurity solution for companies.
5. Not reviewing policies when the company changes
Growth, the opening of new sites, an increase in workforce, digitalisation or entry into new markets should be accompanied by a technical review of the insurance programme. An SME operating differently from three years ago probably has a different risk exposure from that reflected in its current policies.
“An SME’s insurance policies should not be renewed routinely. As the company evolves, its risks and protection needs also change.” — Carmen de Haro, RibéSalat
How to know whether an SME is well protected: assessment checklist
A practical way to assess whether the insurance programme is properly structured is to check whether the company can answer these questions clearly:
- Have we identified all mandatory SME insurance policies that apply to our specific activity?
- Are the risks that could most severely affect operational continuity covered?
- Are insured sums and limits of cover up to date and aligned with the company’s current situation?
- Could the company financially absorb a temporary interruption of its activity?
- Is there sufficient protection for directors or officers, where appropriate given the corporate structure?
- Has the insurance programme been reviewed in the past year or after any relevant change in the business?
If these questions do not have a clear answer, it is probably time to review the coverage structure with the support of an insurance broker specialised in corporate risks. At RibéSalat, we have been designing tailored solutions for SMEs for more than 35 years.
Get the right insurance for your business
There is no standard solution when it comes to SME insurance. Every company has a different reality, specific obligations and a risk exposure that evolves over time. The key, therefore, is not to take out more policies, but to have the right covers in place to protect what truly puts business continuity at risk.
Beyond meeting legal obligations, a sound insurance strategy should address the operational, asset-related, digital, financial and liability risks faced by the company. It is equally essential to review policies periodically to ensure they remain aligned with the business activity, growth and new challenges.
In an increasingly complex and uncertain environment, insurance should be understood as a business management tool that helps preserve stability, protect assets and provide peace of mind for both the organisation and its decision-makers.
“The question is not only which insurance policies a company is required to take out, but which risks it could not absorb if they occurred tomorrow. That is the reflection that makes it possible to build truly effective protection adapted to each SME.” — Carmen de Haro, Retail Director at RibéSalat
If you have doubts about whether your company is properly protected, a specialist review can help you identify potential gaps, optimise costs and adapt covers to the current reality of your business before a claim occurs.
