I run a small business or just hired my first employee: which insurance is compulsory, and which do I need first?

Law 174/1989 says that “every employer” must be insured for work accidents and occupational diseases of each employee; we found no exemption for part-time work. The section 3 exemptions concern specific cases. If you are unsure about yours, ask the labour inspectors in writing.

Failing to insure is a criminal offence under section 21 of the law, and the original law also made directors liable. We did not confirm the current penalty after amendments. Most important: without insurance, a worker’s claim falls on the business itself. Arrange cover straight away.

It is not settled. According to a February 2026 report, the 15,101 companies whose only employee is the director “may fall under exemptions”. We did not read the exemptions in full, so we do not say you are exempt. Ask the labour inspectors or your accountant in writing and keep the answer.

Employer’s liability covers your liability to your own employees for work accidents and illness, and it is compulsory. Public liability covers your liability to third parties, such as customers and passers-by, and we did not find it compulsory for all businesses. They are different policies or different sections.

Both, for different things. Social Insurance gives employees an injury benefit that does not depend on the employer’s insurance. Employer’s liability insurance covers the employer’s civil liability if the worker claims or sues.

Without public liability, a customer’s claim is usually paid by the business itself, if it is found at fault. Some shop property policies have a liability section; check your terms. Tell your insurer in writing, keep photos and witnesses, and do not admit liability.

It pays lost income or extra costs when the business stops after a covered loss, for a period set in the policy. Many policies require physical damage to your own premises, unless there are specific extensions. Check the indemnity period and the extensions.

Many home policies exclude or limit business equipment and stock. Tell the insurer in writing that you work from home and ask what is covered or whether you need an extension. Undeclared business use can cause problems in a claim.

If you carry goods in your own vehicle, the vehicle’s insurance usually does not cover the load. Goods-in-transit cover is usually separate. Check also what the courier company you use takes on.

Every vehicle on the road needs at least third-party liability cover (Law 96(I)/2000). For a van driven by several people, check that the policy covers all your drivers (named, or “any driver” with age and experience conditions) and business use. Declare every change of driver in writing.

Often yes, but glass and signs may be a separate section or extension, with their own limit and excess. Check whether your policy has “glass breakage” and whether it covers external signs.

Yes. The law concerns “each employee”, and we found no exemption for seasonal work. Tell the insurer in writing the number of workers and the period, since the policy is often calculated on the workers or the payroll.

Yes. The Civil Registry and Migration Department’s checklist for renewing a residence and work permit asks for an employer’s liability policy that renews automatically. Check the current checklist before applying.

At the end of 2025 there were 66,711 registered employers and about 35,251 employer’s liability policies (Cyprus Mail prints 35,521), counted only at the 19 member companies of the Insurance Association. Of the 30,042 employers of domestic workers, 19,158 had cover (February 2026).

If one of your products causes damage or injury to someone, the liability may fall on you. Product liability is usually a separate cover or section. We did not find it compulsory; check the rules for food and cosmetics with the competent authorities too.

Two that show in the figures: missing employer’s liability insurance (at the end of 2025, about 35,251 policies for 66,711 employers) and under-insured property, which after the 2025 fire led to proportional payments. A third is conditions not met. Check all three once a year.

Many business interruption policies pay only if there is damage to your own premises; some have an extension for “denial of access” or damage to a neighbouring property. Check whether you have such an extension and ask for a written answer before you need it.

Often with a low limit and strict conditions, such as a safe, an alarm and hours. Many policies cover cash only in a locked safe outside business hours. Read the limit for “money” and the security conditions.

We found no Cyprus rule on special fire insurance for restaurants. Insurers often set conditions for kitchens, such as cleaning extractor hoods and having fire equipment. Read the conditions and keep maintenance records.

Employer’s liability insurance covers, within its limits and terms, what the employer has to pay if found liable, and usually the legal costs. Tell the insurer in writing straight away and do not answer a lawyer’s letter on your own. The Social Insurance injury benefit is separate.

With no staff, employer’s liability does not concern you. Usually the first things to think about are liability to others (customers, the place you work), your equipment and, for those who give advice or services, professional indemnity. For your own income if you fall ill, see Self-employed: if I stop, who pays?.