Outsourcing is a fairly common phenomenon in many business areas. But what happens in these cases if an employee of the subcontractor suffers damage during the provision of services and has the right to receive compensation for it? Is the company that has subcontracted the service responsible for it, or should the subcontractor do it?
This is a complex issue in which having health insurance Cross RC can be very helpful. Therefore, if you need specific advice on this matter, in Euroteide Insurance (Insurance Brokers and Consultants) We are insurance specialists with extensive experience.
What is Cross Civil Liability in Insurance?
To understand what is Cross Civil LiabilityFirst you have to be clear about what the Civil liability. It is the legal obligation that any natural or legal person has to compensate for the damage that another may have suffered to their person, their assets or their property, as a result of an action by the person or entity responsible, or by someone over whom it is must exercise surveillance.
Thus, in the business field, companies have Civil liability regarding damages that its employees may suffer in the exercise of their duties. But also if any member of your staff causes damage to a third party while fulfilling their obligations.
Crossed Civil Liability is a coverage that is part of insurance designed specifically for self-employed workers and companies that subcontract or outsource a service or the execution of a work. Its objective is to address the damages that those people who work for them, but who are not their direct employees, may suffer.
Suppose that a construction company subcontracts with another entity the execution of a work that has been awarded to it. The party hired in the first place is responsible for everything that happens on the job, and they will be the ones who will be held liable if something goes wrong. Therefore, if one of the workers who is part of the staff of the subcontracted company suffers an accident, it will be the contracting company that will have to pay the compensation and the amount of medical expenses.
To clarify concepts, it is important to be clear that the members of a company's staff are covered through the Liability insurance It is mandatory that this person has a contract. And those who provide services through a subcontractor are protected through insurance coverage. Cross Civil Liability, but it is not mandatory to hire it.
Differences between Crossed and Subsidiary RC
Between Cross Civil Liability and subsidiary there is an important difference. The Cross Civil Liability covers damages suffered by subcontracted workers, while the Subsidiary Civil Liability is responsible for providing coverage for damages suffered by third parties, regardless of whether they have been carried out by the contracted or subcontracted company (or one of its employees).
But this subsidiary Civil Liability in cases of subcontracting only operates if the subcontracted entity does not have a Insurance de Civil liability own, or the amount of this does not cover the total compensation. In this case, The policy of the contracting company would be responsible for subsidiary coverage of that amount..
Returning to the previous example of the work, if a tool falls and hits a pedestrian, this accident is covered through the Subsidiary Civil Liability of the contracting company, if it turns out that the subcontracted company does not have its own insurance Civil liability, or this is insufficient. What is sought with this is that whoever has received the damage, in this case a third party outside of both companies, can see it compensated in a simple and quick way.
Advantages of Cross Civil Liability
Contracting coverage Cross Civil Liability It is not mandatory, but it is highly advisable, and several benefits are derived from it.
Physical and material damage coverage
This Civil liability copes with the physical damage they may suffer during the provision of services the workers of the subcontracted entity. But it also covers material damage that the subcontractor may suffer. For example, if damage occurs to machinery as a result of an accident in the work area.
Avoid large outlays
Accidents happen, and the obligation to pay compensation arises from them. If you have contracted a policy that covers Cross Civil Liability, there is no need to worry about this issue.
Because the employer or self-employed person has the security of knowing that this coverage will operate if the workers in the subcontracted entity suffer any damage, or there is material damage. Which means a great savings of both money and worries. It is, therefore, a smart way to protect business assets.
What is the coverage of Cross Civil Liability?
This coverage guarantees payment of medical expenses and compensation that may arise for the workers of the subcontracted company as a result of an accident during the provision of a service or the execution of a work.
The peculiarity is that this Insurance must be hired for each subcontracted worker, since what it does is cover individual damages.
As we said before, this type of Insurance is not mandatory, but it is They are highly advisable in certain activities, especially in the construction field, where subcontracting is very common, and accidents of greater or lesser severity are the order of the day.
All companies must have a Insurance of Civil Liability that covers compensation for possible damages. In the case of entities or companies that subcontract with others, contract coverage of the Civil liability It is a simple way to avoid problems and large outlays of money if an accident occurs.
As each company is different, what we experts advise is hire customized insurance. Evaluate the needs that exist in each specific case and, based on them, choose a policy that includes the coverage that is really needed.
En Euroteide Insurance (Insurance Brokers and Consultants) We are specialists in the field of Insurance for companies and professionals. If you want to cover the Cross Civil Liability of your business, let us advise you and help you find the most suitable product.
