The number and range of insurances available for our homes, cars and lives can be bewildering.  Even with cover available instantly on-line it can often be comforting to use the services of a broker to arrange your insurance.    

A broker is an impartial intermediary who acts on your behalf to find you the best and most appropriate cover for your needs and in your circumstances.

An Agent is normally tied to a particular insurance company or limited range of companies , and only sells their products.

In Spain the activities of Agents and brokers are regulated by Law 26 of 2006 which lays down their qualifications and obligations towards their clients and the insurance companies they deal with.  

Foreign brokers and agents who are already registered in another country within the European Economic Area, such as the United Kingdom, are entitled to register to do business in Spain.        

The activities of brokers and agents are regulated by the Dirección General de Seguros y Fondos de Pensiones (Director General of Insurance and Pension Funds) and a broker or agent must show their registration number on all their publicity material, whether printed, or on-line.

Article 6 of Law 26 of 2006 states that any money received by a broker or agent is treated as being received in trust for the party for whom it is intended. 

 Most importantly, if you have paid money to a broker for your insurance premium, Article 26.4 states that the premium is only to be regarded as paid to the insurer if the broker has issued you with a written receipt for the premium in the name of the insurer, so always make sure that you get a receipt or “cover note” that not only shows the name of the broker, but also the name of the insurer, type of cover, and amount paid. 

Conversely, if the broker has received money from an insurance company in settlement of a claim you have made against your policy, that money is to be regarded as yours.

• Insurance For Man’s Best Friend?

Many of us, including me, get great pleasure from the companionship which our pets provide but this pleasure carries with it responsibilities, not only to your pet but also to third parties.   If your dog bites a neighbor, or runs into the road and causes an accident, what is your liability?

It is an old saying that every dog is allowed one bite, but that is not legally correct.  In the regions of Madrid and the Pais Vasco it is compulsory for all dog owners to have insurance against damage or injury which their dog might cause no matter what breed of dog it may be.

In other autonomous communities the obligation to have insurance is limited to certain breeds.  In the Valencian Community legislation lists 14 specific breeds and includes, Staffordshire Bull Terriers, Pittbulls, Rottweilers, Dobermans, as well as other breeds that may be considered more exotic.   Insurance is also compulsory if your dog has a history of aggression which has caused injury even if it is not one of the listed breeds.

If insurance for third party liability for your dog is compulsory cover, must be for a minimum amount of €130,000.00.

Although not compulsory anywhere in Spain similar insurance is also available to cover cats

This type of insurance can be added to your household policy, or combined with health insurance for your pet.

Whenever dealing with advisers make sure that they are properly qualified and if in doubt seek qualified professional advice.