What insurance policies are required by law in Denmark?
What insurance policies are required by law in Denmark?
When it comes to insurance, figuring out what's needed and what's voluntary can be a jungle. However, some insurances are required by law, which means that you as a citizen or company in Denmark are obliged to have them. Here we will go into depth about the statutory insurances, their importance and why they are so important.
What is a statutory insurance policy?
A statutory insurance policy is an insurance that you are required by law to take out. These insurances are intended to protect other people, the community or a workplace from the financial consequences of injury or mishap. So it is not only about protecting yourself, but also about ensuring that any injured party gets coverage.
The main statutory insurances
Let's take a closer look at the insurance policies that are required by law in Denmark:
1. Liability insurance for cars (Car insurance)
The most well-known statutory insurance is the liability insurance for cars. If you own a vehicle, you are required by law to have liability insurance. This insurance covers damage that you may cause to other persons or their property while driving.
Why is it statutory?The purpose of liability insurance is to protect third parties from financial loss and ensure that they can receive compensation for damages. For example, if you crash into another car or cause injury to someone, liability insurance covers the costs. Without this insurance, having to pay large claims could become a financial burden for you.
2. Occupational Injury Insurance
If you are an employer, it is mandatory to take out occupational injury insurance for your employees. This insurance covers injuries that occur as a result of work, such as accidents or occupational diseases.
Why is it statutory?The purpose is to protect employees and ensure that they receive compensation if they are injured or become ill as a result of their work. Occupational injury insurance is an important part of the Danish labour market system that ensures safety for employees.
3. Liability insurance for dogs
If you own a dog, it is mandatory to have liability insurance for it. Insurance covers if your dog causes damage to other people, animals or things.
Why is it statutory?Dog owners have a responsibility for the actions of their animals. For example, if your dog bites someone or destroys property, liability insurance ensures that the injured party receives coverage for their loss.
4. Professional liability insurance for certain industries
In some industries, it is mandatory to have professional liability insurance. This applies, for example, to industries where the work involves a risk of causing harm to third parties, such as lawyers or healthcare professionals.
Why is it statutory?This insurance protects customers and clients from errors and damages that may occur as a result of the company's activities. It also ensures the financial stability of the company by preventing large claims for damages.
Insurances that are often confused with statutory
Although there are many insurance policies that are good to have, not all of them are required by law. Here are some examples of insurance policies that are often confused with the statutory ones:
1. Casco insurance
A casco insurance covers damage to your own car by accident, theft or vandalism. While it may be a very sensible insurance policy, it is not required by law. However, it is often required if you borrow for the car through a bank or finance company.
2. Home insurance
Home insurance covers damage to your property as a result of fire, theft or water damage. Although it is a very popular insurance policy, it is not required by law. However, many housing companies recommend that tenants take out home insurance.
3. Travel insurance
Travel insurance protects you from unforeseen events when you travel, such as illness or accident. While it can be invaluable when the accident is out, it is not required by law.
Consequences of lack of statutory insurance
If you do not take out a statutory insurance policy, it can have serious consequences:
- Fines: You can risk getting fines from the authorities for lack of insurance. For example, lack of liability insurance on your car can result in large daily fines.
- Financial responsibility: Without a statutory insurance policy, you have to cover damage yourself, which can become financially ruinous.
- Legal issues: In some cases, lack of insurance can lead to legal problems and possibly the encroachment of your right to perform certain activities, such as driving a car.
Summing up
Statutory insurance is an important part of the Danish system, ensuring security and financial security for all. The best known are liability insurance for cars, occupational injury insurance and liability insurance for dogs. If you own a car, operate a business or have a dog, it is essential to ensure that you have the necessary insurance in place.
Although other insurances such as casco insurance and home insurance are not required by law, they can still be good to consider depending on your situation. It's ultimately about protecting yourself, your loved ones and your finances.
Always remember to seek advice from your insurance provider if you are unsure about which insurance policies you need.
