Workers Compensation Insurance for Self-employed entrepreneurs in Portugal

Workers Compensation Insurance for Self-employed entrepreneurs in Portugal - C1 Broker - Insurance Broker

If you are a self-employed entrepreneur in Portugal, you will need a Workers Compensation Insurance (Acidentes de Trabalho). This is a mandatory insurance and if you don’t have one in place, you will face problems in case of sick leave or work accident, a part of potential fines from the Portuguese Tax authority “Finanças).


I know, I know, self employed persons are special people. Very hardly you will get sick cause all your strength and motivation is focused in constructing your business! And although entrepreneurs are super motivated people, everyone is vulnerable to accidents and illnesses. And as a self-employed person if you are unable to work due to an injury or illness, you could find yourself in financial trouble very quickly.


Also, if you cannot work who’s going to pay your debts or finish your projects?  That’s why it’s so important to have disability insurance. Disability insurance provides you with a replacement income if you are unable to work due to an accident or illness. It can help you pay your medical bills, support yourself and your family, and maintain your lifestyle. In short, it gives you the peace of mind that comes from knowing you are protected financially if something happens to you.


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Workers Compensation Insurance

In Portugal, there’s a mandatory insurance for all workers, self-employed or hired workers, called Workers Compensation Insurance “Acidentes de Trabalho”.  This is a type of insurance that provides coverage for employees and self-employed persons if they are injured or become ill as a result of their job. In case of employees this insurance is hired and paid by the Company that employs them, but in case of self-employed workers, is a cost that must be supported by the entrepreneur.


So, if you are self-employed, you will need a “Acidentes de Trabalho” insurance.



Self-employed Workers Compensation Insurance (Acidentes de Trabalho – Trabalhador Independente)

The Workers Compensation Insurance provides benefits to self-employed workers who are injured or become ill as a result of their work, covering medical expenses and lost wages. Also provides benefits to workers who are permanently disabled as a result of their injuries and cover death benefits to the families of workers who die as a result of their work. This insurance is an important part of the social safety net in Portugal. It protects workers and their families from financial hardship in the event of an injury or illness.


Workers accidents can occur due to a variety of factors, such as slips and falls, exposure to hazardous materials, or even car accidents while on the job or driving to the job. No matter the cause, “Acidentes de Trabalho” insurance can help to mitigate the financial impact of an accident and provide peace of mind for both employees and employers.


Very important to keep in mind, this insured covers in case of Accident & Illness (Sick Leave) “Baixa por Doença”. Here are some examples:


Example 1 “Sick Leave”

  • You catch a heavy flu, and you need to stay home in bed for one month. You can declare “sick leave”. The “Acidentes de Trabalho” insurance will kick in and pays 55% of your wage after the third day.


Example 2 “Road Acident”

  • On your way to the shared office you have a car accident. You will need an operation and the recovery process takes 2 months. You declare “accident of circulation on the way to your work”. The “Acidentes de Trabalho” insurance will pay all the surgeries in a public hospital and pay 55% of your wage after the third day.


Example 3 “Lost a Hand”

  • On the way to see a client you have a car accident and lose a hand. You will need an operation and the recovery process takes 6 months. You declare “work accident”. The “Acidentes de Trabalho” insurance will pay all the surgeries in a public hospital, 55% of your wage after the third day, and regarding the lost hand they will pay a prosthesis and an indemnity that will be calculated in relation to your profession, age and how much people (children, spouse) are economical dependent of you.


So, as you can see Acidentes de Trabalho is a very helpful insurance to have. Workers insurance is a state-mandated insurance that is heavily regulated. This means that there is very little difference in the coverage that is offered by different insurance companies. The covers are fairly similar, and the prices are only slightly different.


The negative point is that compensations are low, and it only covers 55% of your wage in case of accident or illness. Also, this insurance only covers if the accident is related to work, so if you have a injury due to playing football on your free time, that won’t be covered.  To counteract you can hire a supplement insurance called “Personal accidents”.


In case of an accident (work related or not) the insurance kicks in and has compensations up to 500.000€ and in relation to the wages, they will pay the 45% difference (55% will be paid by the Workers Compensation Insurance – MANDATORY & regulated by the State). So, in an event of a accident you have your wage 100% covered. Here is an example.


Example 1

You are self-employed and a declared monthly income in Portugal of 2.000€. You have a car accident and can’t work for 5 months. The mandatory Self-employed Workers Compensation “Acidentes de trabalho” kicks in and they will pay 55% of your monthly income (1.100€).

Your complementary accident insurance (Acidentes Pessoais) also kicks in and you will receive the other 45% (900€). So, during this 5 month that you cannot work, you will receive 100% of your declared income (55% from the mandatory insurance and 45% from the complement accidents insurance).


How much it costs?

As an example, if you are a self-employed informatic with a 24.000 euros income a year, this mandatory insurance starts at 240 euros per year (basic cover). Then there are products with additional covers, that also include a capital in case of death, and an extra daily subsidy in case of hospitalization, and the premiums are around 360 euros per person / year…



So, but if you want to have a more complete cover? Can you insure the 100% of your monthly income? Can you increase the values of compensation in case of accidents or disabilities? Yes, you can, do that by hiring a complementary insurance of accidents (Individual Personal Accidents) .




What is Individual Personal Accident Insurance?


In the event of an accident, Individual Personal Accident Insurance covers the payment of capital for death and permanent disability, daily indemnities in the event of temporary disability or hospitalisation, treatment costs, medical transport and repatriation, search, rescue and salvage costs, funeral costs. Some products also give access to the 2nd medical opinion service provided by Best Doctors and compensation for loss or damage to luggage during travel due to treatment carried out by the Insured Person.


Personal Accident Insurance aims to provide financial support to the family of the Insured Person, when the latter is the victim of an accident-causing death, permanent disability or temporary incapacity.


In short, if you are a self-employed person, Personal Accident Insurance may be taken as a complement to the compulsory “Workers Compensation Insurance”. If the accident is classified as a work accident the insurance works as supplementary cover, and if the accident is not work related, then it will cover fully.



How much it costs?

The cost of a Personal Accident Insurance in Portugal depends of your profession, age and yearly income, but it can start at 140 euros per person/year or cost around 250 euros for a more comprehensive cover.




In conclusion,


Entrepreneurs face a unique set of risks when it comes to their finances. Not only do they have to worry about the usual risks associated with business, such as market fluctuation and customer defaults, but they also have to contend with the possibility of personal injury.


Accident insurance is an important tool for protecting entrepreneurs from the financial devastation that can result from an accident or a prolonged illness. Without insurance, an entrepreneur who is injured in an accident could be facing a medical bills, lost income, and other expenses. Accident insurance can help to cover these costs, providing peace of mind and financial security in the event of an accident.



With insurance, you can protect yourself and your business from the financial consequences of an accident or illness. There are many different types of insurance available, so it’s important to choose the right one for your needs.


I highly recommend speaking with an insurance broker like C1 Broker, to find the best policy for you.


We will take the time to understand your business and your needs, and then find the policy that best fits those needs. Don’t wait until it’s too late – make sure you’re protected with the right insurance.

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