Home > Overview of Business Insurance in Portugal
Published at 30 October 2023
But there are so many options to choose from, and the insurance industry is notoriously difficult to navigate. What policies do I need? Is it mandatory or simply recommended? What does each policy cover?
Our guide to small business insurance is here to help.
|Type of Insurance||Status for Small Businesses|
|Employer's Liability Insurance||Mandatory|
|Professional Liability Insurance||Recommended|
|Public Liability Insurance||Recommended|
|Motor Vehicle Insurance (if applicable)||Mandatory (if the business owns vehicles)|
|Health Insurance||Recommended (as an employee perk)|
|Commercial Property Insurance||Recommended|
|Business Interruption Insurance||Recommended|
|Directors and Officers Liability Insurance||Recommended (especially if the business has a board or advisory committee)|
|Workers' Compensation Insurance||Mandatory|
Mandatory - Any business employing staff needs this. It defends against claims from workers who might be injured or fall ill due to job-related activities.
Recommended - For professionals whose errors can lead to client losses, this insurance, often termed Errors & Omissions, is invaluable.
Recommended - Protect your business from claims by third parties for property damage or injuries, especially crucial for businesses with physical footprints.
Mandatory (if your business owns vehicles) - For businesses with vehicles, this offers coverage against damages, accidents, and third-party claims.
Recommended - A potential employee incentive, this ensures they're covered for health contingencies.
Recommended - Secure your tangible business assets, such as equipment, buildings, and inventory, against unforeseen events.
Recommended - Helps businesses maintain financial stability during interruptions, covering lost income and other overheads.
Recommended - Shields top-tier leaders of a company from personal losses if they're found accountable for wrongful acts in their roles.
Mandatory - A legal requirement, it supports employees who suffer injuries or illnesses due to work-related circumstances.
Every business is unique, and so are its risks. Evaluate the potential hazards your business might face, be it natural disasters, theft, lawsuits, or any other threats.
Don't settle for the first offer. Obtain quotes from multiple insurers, analysing coverage details, limits, deductibles, and premium rates.
Opt for an insurance provider with a robust track record, positive customer reviews, and a reputation for settling claims promptly.
Every policy has exclusions. Ensure you're aware of what's not covered to avoid unexpected surprises during a claim.
Your chosen policy should provide sufficient coverage to rebuild your business from scratch in case of a total loss. Under-insuring might save you money on premiums but could be costly in the event of a claim.
Many insurers offer Business Owners Policies that bundle multiple coverages into a single package, often at a discounted rate.
As your business evolves, your insurance needs will shift. Regularly review and update your policy to ensure it aligns with your current business situation.
Don't hesitate to ask your insurer about any ambiguities. Clarity now can prevent misunderstandings later.
While some, like Workers' Compensation, are compulsory, others vary based on business type and scale. Always check with local regulations.
Absolutely. Many insurance providers furnish bundled packages tailored for businesses, often at a reduced rate.
It's wise to review your policies annually or when there are significant changes to your business, ensuring you're always adequately covered.
While some policies might be transferable, others could be location-specific. It's advisable to consult with your insurer before relocating.
Firstly, understand the reason for denial from your insurer. If you believe it's unfair, consider legal advice or mediation.
Yes, online businesses face unique risks like cyber threats, and thus, require tailored insurance policies to protect them.