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Taking out an insurance policy

Employers must take out workers’ compensation insurance for employees. The contents of the insurance and to whom it applies are specified in the Workers’ Compensation Act.

Companies, private traders and private individuals that employ employees whose combined wages or salaries in a calendar year exceed 1,300 euros are considered employers. Households that employ employees are also deemed to be employers with a duty to take out insurance.

The insurance covers employees working for the employer in an employment or public-service employment relationship and is valid without separate notice. Unlike with pension insurance, individual employment relationships are not registered for workers’ compensation insurance.

The insurance does not include lower or upper limits based on the employee’s age or a minimum limit of earnings in euros. Employees are covered by workers’ compensation insurance even if they are retired and working for the employer in an employment relationship.

All work performed in Finland must be insured with workers’ compensation insurance. The insurance is not affected by

  • the employee’s place of residence
  • nationality
  • employer’s domicile
  • nationality.

Work performed in Finland means work that is carried out within Finland’s geographical borders. Exceptions that apply to specific professions are provided by separately by law.

Continuous insurance paid by the employer

Workers’ compensation insurance is usually taken out as a continuous policy without a fixed end date. If the duration of the work or work site do not exceed one year, the insurance policy can be drawn up for a fixed term.

However, if the work continues beyond that date, the employer should inform the insurance company about the extension before the expiry date. The validity of the fixed-term insurance can be extended until the new expiry date, though for no more than 12 months.

If the work continues after the expiry date and the insurance company has not been informed of the continuation, the employer is guilty of failure to fulfil its insurance obligation.

When taking out a policy, the policyholder must provide the insurance company with the information it asks for to determine the insurance premium. Such information includes the sector, extent and type of work, the company’s ownership structure, and what effort has been made to improve occupational safety.

In addition, the insurance company will need to be provided with the information it requests for the insurance premium annually by the end of January. Information reported by the policyholder to the Incomes Register need not be reported again to the insurance company. Insurance companies retrieve the required salary data from the Incomes Register. During the policy period, the policyholder must also inform the insurer of any material changes to the information. The insurance company must be provided with the information within 30 days of the change.

The insurance company with whom the employer has taken out the insurance confirms the validity of the workers’ compensation insurance. The employer must display, at the workplace, the Workers’ Compensation Act and information on the insurance company underwriting the policy.

Employees' group life assurance

Employers must also take out employees' group life assurance when this is required by the national collective agreement for the industry. Nearly all persons covered by the compulsory insurance under the Workers’ Compensation Act are also covered by group life insurance. The insurance is taken out simultaneously with the employers’ compulsory workers’ compensation insurance.

On average, the insurance premium is 0.07 per cent of the payroll. The insurance company charges the premium together with the workers’ compensation policy premium, and credits it to the Employees’ Group Life Assurance Pool.

An employees’ group life assurance is valid during the employee’s working hours and leisure time. A benefit to the beneficiaries is paid upon the death of an insured employee. The claim is processed by TVK. For further information, see trhv.fi