Workers Compensation Insurance
Workers' Compensation Insurance protects your employees.
Workers’ Compensation Insurance is a statutory insurance policy that protects both employees and employers in the event of a work-related injury or occupational disease. It provides financial protection in connection with workplace injuries and forms an important part of a company’s overall risk management strategy. Danish legislation generally requires employers with employees to maintain Workers’ Compensation Insurance, regardless of whether their employees are full-time, part-time or temporary.
Statutory Workers' Compensation Insurance for Employers
Workman’s compensation provides coverage if your employees experience an accident during working hours.
An accident is defined as a personal injury caused by an event or impact that occurs suddenly or within five days.
Examples of such events or impacts can include a fall, lifting, or a traumatic experience.
- As an employer, you are required to have work injury insurance for all employees performing work in Denmark. This also applies if the work is unpaid, the employment is temporary, or the employee only works a few hours a week.
- If family members of the employer work in the business and their work is comparable to that of other employees, each family member must also be covered by work injury insurance. If their work is not comparable to other employees, a voluntary work injury insurance policy can be taken out instead.
- Directors of private limited companies (ApS) and public limited companies (A/S) must also be covered by work injury insurance. The same applies to shareholders if they work in the company. Directors of a sole proprietorship can take out voluntary work injury insurance instead.
What Is Typically Covered by Workers' Compensation Insurance?
Loss of earning capacity due to a work injury:
- Loss of earning capacity means that a work injury has reduced your ability to earn money through work. The Work Injury Act entitles you to compensation for loss of earning capacity if, after the injury, you have a loss of at least 15 percent.
Compensation for permanent injury due to a work injury:
- Covers compensation for permanent injury as a result of a work injury. According to the Work Injury Act, you can receive compensation if the injury is 5 percent or more.
Death due to a work injury:
- Covers the death of employees resulting from a work injury.
- Coverage for loss of a provider.
- Possibility of special compensation for surviving dependents.
Medical expenses due to a work injury:
- The Work Injury Insurance Act allows you to have expenses related to the consequences of the injury covered.
Glasses/Contact Lenses:
- Covers damage to glasses or contact lenses for repair or replacement when they are damaged during work.
Emergency Crisis Assistance:
- Covers crisis support for the insured, including crisis counselling. A psychological crisis may arise following incidents such as robbery, workplace accidents, assault, threats or burglary. Cover is provided in accordance with the terms and conditions of the insurance policy.
Optional coverages
- The insurance can be extended with various optional coverages, providing additional protection in specific situations.
- The insurance can be extended with various optional coverages, offering additional protection in specific situations.
- A complete overview of the optional covers is available in the policy terms and conditions.
Frequently Asked Questions
How do I report a workplace injury claim?
If an employee suffers a work-related injury or develops an occupational disease, the incident must be reported in accordance with the applicable regulations.
On the Claims page, you will find information on how to report a claim, together with relevant contact details, guidance and claim forms.
Is Workers' Compensation Insurance Mandatory for All Businesses in Denmark?
Under Danish law, employers with employees are generally required to take out statutory Workers’ Compensation Insurance. The purpose is to ensure that employees are financially protected if they suffer a work-related injury or develop an occupational disease as a result of their work.
Special rules may apply depending on the ownership structure of the business and the types of employees it engages.
How Much Does Workers' Compensation Insurance Cost?
The cost of Workers’ Compensation Insurance depends on several factors, including the company’s industry, payroll, number of employees and the level of risk associated with its activities. As a result, the premium is calculated individually based on the specific circumstances of each business.
When Is Workers' Compensation Insurance Required?
Workers’ Compensation Insurance must be taken out as soon as a business hires employees. It is the employer’s responsibility to ensure that employees are protected in the event of work-related injuries or occupational diseases.
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Questions About Workers' Compensation Insurance?
Whether you require more information about our Workers’ Compensation Insurance or need assistance with reporting a work-related injury, our experts are ready to help.
