mong the various types of insurance that companies can offer their employees, there is one that is compulsory and transversal to any organisation in Portugal, regardless of its size or branch of activity: workers' compensation insurance. This guarantees the necessary medical and hospital care, as well as potential compensation for damages suffered by an employee in the event of an accident occurring during working hours or on the way to and from work.
However, depending on the company's field of activity, it may or may not be obliged to take out other types of insurance. According to the Portuguese Insurance and Pension Funds Supervisory Authority, this is the case with fire, theft or life insurance, for example. In addition to these, Coverflex also lets you know which types of insurance, although not mandatory, may be advantageous to have in order to complement the benefits package offered to employees, making it more attractive and competitive.
The one that can't be missing in any professional activity
Workers' compensation insurance
As we have already mentioned, this is the only insurance that is compulsory for all companies, regardless of their business field or size. All company's employees must be protected in the event of accidents occurring in the workplace, during the time dedicated to professional activity, or on the commute to and from work, resulting in bodily injury, functional disorder or illness leading to reduced working or earning capacity or, in extreme cases, death.
The ones that can't be missing depending on the professional activity
Personal accident insurance
For statutory bodies and for a wide range of professional activities, such as nursery schools, tourist entertainment companies, holiday camps and occupational activities, personal accident insurance is also compulsory.
Personal assistance insurance
Compulsory for tourism companies and maritime-tourism operators, this insurance provides various guarantees, such as hospital care, medication and emergency transport.
In the case of company vehicles, car insurance is another compulsory type of insurance.
Fire insurance is required only for businesses that own buildings under horizontal property ownership, that is, when their establishments are located in buildings composed of autonomous fractions, such as flats, floors and garages. The expenses necessary for the repair and recovery of the company's premises are covered by this insurance if they have suffered damage as a result of fire. But that's not all: damages resulting from floods and even natural phenomena can also be protected.
Ensuring protection for companies from the repair costs or possible compensation they have to pay as a consequence of their actions, when they cause damage to third parties, this type of insurance is compulsory for various professional activities. This is the case for clinics and dental practices, collective child transport activities, real estate mediation, air transport, among others.
Only compulsory for private security companies and art exhibition promoters, theft insurance covers expenses caused by theft of company property. It is not compulsory for all companies, but can be taken out by any company.
This insurance guarantees coverage for death and permanent disability. It is compulsory only for militants going on peace and humanitarian missions outside the country, as well as members of the security services and forces that depend on the Portuguese Ministry of Internal Affairs on police, humanitarian and peace missions outside the country.
Nice-to-have to boost the benefits policy
It is also worth looking at some insurances that go beyond the mandatory protection but which can strongly contribute to strengthening the company's benefits policy. One of the main advantages of including other insurances (and benefits) in the salary package is to promote happiness and motivation among the team members, as well as to increase competitiveness when attracting new talent. This is the case, of course, with health insurance. But there are many other possibilities.
According to our study "The state of compensation 2022-2023", which included the responses of 1,438 professionals of different ages and regions and from different companies and industries, health insurance is one of the benefits that employees have most access to. More than half (57%) confirm this, and it is also one of the most valued benefits. Over 30% of workers say they use their benefits on health and well-being expenses.
If your company does not offer health insurance to employees yet, do consider it. If it does, it might be a good idea to review the coverage and its extent when it comes to mental health.
We have already mentioned this type of insurance. Although it is not compulsory across all areas of activity, perhaps it is interesting to reflect on potentially offering it to employees. This insurance guarantees the payment of compensation to employees or their beneficiaries in the event of death or disability. Besides being a strong asset in attracting talent, it can also be used by the company to reduce the tax burden.
In the case of Corporate Income Tax (IRC), it guarantees a reduction, as the life insurance premium is considered a tax cost. In addition, the premium of life insurance for employees is considered an additional benefit to their remuneration, and as such, it is exempt from the Single Social Tax (TSU), i.e. the amount you pay monthly to Social Security.
Personal accident insurance
Like life insurance, this is another one of those that, although not compulsory for all areas of activity, can add value for the employer and the employees. It is a kind of extension of the workers' compensation insurance, protecting the employee in the extra-professional sphere as well.
Let's say that an employee, who is a padel aficionado and plays this sport every weekend, gets injured while playing it and, as a consequence, needs surgery. Even if the accident does not occur during working hours, and is in no way related to the worker's profession, this insurance - as the name suggests - covers this type of accident.
By taking out this insurance, the company sends the message that it wants to ensure that its people are protected even in the event of personal accidents, which makes it even more valuable in the context of the benefits policy.
Retirement Savings Plans
Let's not forget Retirement Savings Plans (PPR), which can take two forms: funds (without guaranteed capital) or insurance (with guaranteed capital).
PPR insurance is aimed at those who wish to have guaranteed savings when they reach retirement age. In other words, it is a long-term financial investment that allows you to save money until retirement age, generating an additional return depending on the respective annual interest rate.
The concern with saving - very much in part due to the lack of sustainability of the current Social Security model - is shared by workers and companies. So, to ensure a more peaceful tomorrow, some companies, diversifying their benefits, already propose that employees create a PPR, a benefit also increasingly valued by people.
In addition, to encourage long-term savings habits and regular contributions of money, those who sign up for a PPR benefit from an advantageous tax regime, one of the main reasons for the popularity of this instrument. The advantages include paying less tax on the income obtained, particularly at the time of withdrawal, but also the fact that gains are subject to a reduced rate of personal income tax when compared with other investments.
On the importance of long-term savings habits, we advise you to read the eBook we created following the webinar "Finanças Flex #2 - The importance of saving for retirement", in which we address the importance of preparing an extra-retirement income for when we are no longer of working age. Download the eBook here.
To manage company and employee insurance more easily you can use the Coverflex Wallet integrated solution, which offers a unique digital insurance management experience at no extra cost. Find out how it works here.