Employer’s Liability Insurance is one of the most crucial forms of insurance coverage for any business operating in Cyprus. It is not only a legal requirement but also a meaningful act of protection for your company’s workforce. In any workplace, where accidents and occupational illnesses can have serious consequences, this insurance ensures that employers can meet their obligations to employees without jeopardizing the sustainability of their business.

Legal Framework & Obligations for Employer’s Liability Insurance in Cyprus

In the Republic of Cyprus, Employer’s Liability Insurance is mandatory under the Employer’s Liability Insurance Law of 1989 (Law 174/1989) and its amendments. Every employer who hires at least one employee—either full-time or part-time (working more than 8 hours per week)—is required to maintain an active Employer’s Liability Insurance policy.

Failure to comply with the law constitutes a criminal offense, punishable by up to 12 months imprisonment, a fine of up to €5,000, or both.

Who Needs This Insurance?

This insurance is intended for any individual or legal entity employing staff in Cyprus. Indicatively, it applies to:

• Businesses of all sizes (from small shops to large industrial operations)
• Self-employed professionals with staff
• Public and private legal entities
• Property owners employing domestic helpers or other personnel

It’s important to note that the obligation also extends to employers who hire temporary or seasonal workers.

Coverage & Limits

Employer’s Liability Insurance provides coverage for:

Bodily injury or death of an employee resulting from a workplace accident or occupational disease

Compensation, medical expenses, and legal costs arising from relevant claims

Minimum coverage limits, as defined by law, are:

€160,000 per employee

€3,415,000 per incident or series of incidents

€5,125,000 total coverage per insurance period

Minerva Insurance also offers optional packages with higher limits and additional coverages, tailored to your business needs.

Exclusions

Basic coverage does not include:

• Damages resulting from acts of terrorism, war, or radiation
• Subcontractors not explicitly declared
• Fines, penalties, or damage to property

Learn more in IPID here.

Employer Responsibilities

To ensure that your coverage remains valid and effective, the employer must:

Accurately declare the number of employees and gross wages

Maintain all required safety measures in the workplace

Immediately notify the insurance company of any accident or claim

Avoid admitting liability or making settlements without prior insurer approval

Keep the policy active and visibly display the insurance certificate in the workplace

Employer’s Liability Insurance is an essential safeguard for every employer in Cyprus. Ensure compliance with the law and protect the smooth operation of your business with the support and reliability of Minerva Insurance.

Learn more about our Employer’s Liability Insurance program

Request your free quote or call us at 77771414