Employers Liability Insurance in Cyprus in 2024. A complete guide.
Employers Liability Insurance Cyprus
Business owners in Cyprus need employers liability insurance to protect them from lawsuits arising from employee work-related injury or illness claims.
Without employers liability insurance, your business would be responsible for legal costs, such as lawsuits, attorney fees, and settlements.
It’s important to note that employers liability insurance isn’t the same as group health insurance.
While group health insurance helps to pay for employees’ medical expenses, employers liability insurance helps to pay for legal costs.
In this guide to employers liability insurance in Cyprus, we will examine how this type of insurance can protect your business, and scenarios for when you might need it.
We will help you compare and find the best employers liability insurance policy in Cyprus.
Table of contents
- What is employers liability insurance?
- Do I need employers’ liability insurance in Cyprus?
- Cost of employers liability insurance
- Affordable employers liability insurance in Cyprus
- Insurance for employees in Cyprus
- Employers liability insurance Cyprus quotes
- Online employers liability insurance quotes
- Best employers liability insurance in Cyprus
What is employers liability insurance?
Employer’s liability insurance is a type of business insurance that can help to pay for employee work-related injury or illness expenses and legal fees if you are sued.
You could face costly lawsuits on your own without liability insurance. This coverage ensures you are financially protected from employee claims.
Employers liability insurance can be sold separately or as a part of business insurance.
Business insurance includes property insurance, business interruption, general public and product liability insurance.
What does employers liability insurance cover in Cyprus?
This type of insurance covers the liability of the employer to compensate the employees related to accidents or diseases caused at work resulting from an error or negligence of the employer.
Employers liability cover in Cyprus
Employers liability insurance mainly covers third-party lawsuits from employees registered in the social security authorities of Cyprus. As explained above these lawsuits are related with injuries or diseases resulting from omissions such as failure of the employer to follow security measures.
In addition, it provides coverage from the following types of lawsuits:
- Dual-capacity lawsuits. When an employer has a parallel professional relationship with the employee.
- Consequential bodily injury lawsuits. Non-employee members can file this type of lawsuit if they are affected by an employee’s injury or illness.
- Loss of consortium lawsuits. Spouses can file these types of lawsuits claiming a loss of marital benefits due to an employee’s injury or illness.
Do I need employers’ liability insurance in Cyprus?
You need professional indemnity insurance if your company employs any number of people registered by the Social Security Authorities of Cyprus.
If your employees are freelancers (i.e. independent contractors) then you don’t have to acquire this insurance.
Freelancers who cooperate with you must have this insurance if they have individuals working for them registered by the Social Security Authorities of Cyprus.
If you use subcontractors, you have an obligation to inform them that they should acquire liability insurance for all their employees.
Employers Liability Insurance is obligatory in Cyprus and regulated by Law 174 / 1989.
The minimum required limits of liability are:
- The minimum coverage limit for each accident or disease concerning each employee amounts to €160,000.
- For each incident or series of incidents arising from the same cause, the minimum coverage limit amounts to €3,415,000.
- For each insurance period, the minimum coverage limit amounts to €5,125,000.
In Cyprus, it is a convictable offence for employers to not have employers liability insurance.
Employers who fail to carry this insurance are liable to a fine of up to €5,000, or one-year prison sentence, or both.
Employees are obligated to display their employers liability insurance certificate in a prominent place in their main headquarters, or they will face a €3,000 penalty charge.
The Cyprus Institute of Legal Information (CyLII) regulates Employers Liability Insurance and presents this information on their online portal here.
Cost of employers liability insurance
The minimum and average cost of employers liability insurance is as follows:
- The minimum price of employers liability insurance is €75.
- The average premium for SME companies is €355.
How much is employers liability insurance?
The cost of employers liability insurance is defined by the following factors:
- The number of employees.
- The annual gross salary of each employee.
- Duties of employees (description of work carried out by employees by class of duties).
- Whether the employees engage in manual labour (as they are at a higher risk of injury).
Affordable employers liability insurance in Cyprus
When searching for cheap employers liability insurance in Cyprus, it’s important to note that the insurance market is very competitive. Insurance premiums rarely differ for this reason.
If insurance plan premiums do differ, this means the coverages contained in the plan are not comparable. Therefore, cheap employers liability insurance may be inadequate for your needs.
Instead, we recommend not selecting optional coverages and only buying what you need to reduce the cost of your insurance. This will save you unnecessary costs.
Nevertheless, it is important to acquire an employer liability insurance contract with a minimum liability limit of €160,000.
Another way to save on your insurance is to acquire another policy with the same provider, as you will be offered discounts at the time of purchase.
Employers liability claim examples
Employers can be held liable in many ways for various types of incidents.
While the reasons for a claim can cause physical and emotional harm to an employee, it can cause reputational and financial damage to the employer.
Here are some scenarios detailing employer claim examples.
Injuries relating to manual handling
Jobs that require manual handling are at risk of claims related to manual handling injuries.
Repeatedly moving heavy objects can also cause long-term health problems, such as sciatica and back pain.
A claim can easily arise without proper training, risk assessments, preventive measures and providing quality equipment.
Electric hazards
Electricity is a high-risk factor, and this scenario is not specific to any industry. All employees face electric hazards at work, with varying levels of risk.
If work equipment or the infrastructure of buildings are poorly maintained, employees can suffer serious injuries by performing a simple task which may lead to a claim.
Falling from heights
Many serious workplace injuries result from employees falling from heights. This risk may not be industry-specific, but it is more common in certain industries.
Workers who often perform tasks at height (e.g. window cleaners) are at higher risk of falling from heights. Employers who hire these workers face greater risks of facing a claim.
Employers must implement preventive measures and provide adequate staff training and personal protective equipment (PPE).
Falls, slips and trips
Accidents involving falls, slips and trips are among the most common types of claim and are not industry specific. All employees across all sectors face these risks.
If an employee slips on a spilt drink or falls over broken flooring at work and injures themselves, this could lead to a liability claim.
Industrial diseases
Employees may develop industrial diseases if they are exposed to hazardous materials at work.
For example, legionnaires disease, occupational asthma, or asbestosis.
They may also face hearing impairments due to noise pollution. These illnesses can permanently affect employees and can lead to expensive liability claims.
If you’d like to read more, follow this link to see frequently asked questions about employers liability insurance in Cyprus.
Insurance for employees in Cyprus
In Cyprus, the following insurance products are provided to employees:
- Employers liability insurance (as discussed in this article).
- Group health insurance.
- Keyman insurance (employee's group life insurance)
What is group health insurance?
Group health insurance plans provide health coverage to employees and their families for medical expenses for accidents and diseases.
Group health insurance covers accidents occurring everywhere, not just in the workspace.
Group health members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders.
Group health insurance quotation
For an explanation about this insurance, visit our website.
Keyman insurance
Keyman insurance is a life insurance contract businesses choose to insure their key people.
What is keyman insurance?
This type of policy protects a business from any financial issues if they lose “keymen” or important employees due to illness or death.
The company cannot acquire this insurance on any employee, only crucial employees.
Keyman insurance quotation
To find out more about this insurance, visit our website.
Employers liability insurance Cyprus quotes
Pitsas Insurances is one of the largest providers of business insurance contracts to international companies in Cyprus.
Our clients include international software developers, investment and financial corporations, law firms, and shipping and construction companies.
We cooperate with all local and international underwriters, which enables us to compare all available employers liability policies.
We provide an additional discount on all fixed prices.
Online employers liability insurance quotes
The whole process to obtain employers liability insurance can be done online. You don’t have to be physically present in our office to buy it.
Employers liability insurance Cyprus
Communicate with one of our insurance specialists today to get a hassle-free quotation online.
Best employers liability insurance in Cyprus
Pitsas Insurances provides the best employers liability insurance in Cyprus.
Reasons to pick Pitsas Insurances:
- We offer the lowest premiums in the market.
- We provide discounts for our existing customers.
- We cooperate with the largest international underwriters.
- Additional discounts are given if you acquire any other business contract with us.
- We don’t adjust your premiums if you increase employee numbers during the year.
- Free quotes for employers liability insurance Cyprus and all insurance types.
- We have over 35 years of experience.
Pitsas Insurances Team