If you’re starting a business in Cyprus or expanding operations across Europe, understanding what types of business insurance are required — and which ones are just smart to have — is essential.
Cyprus is known for its pro-business environment, low corporate taxes, and strategic EU location. But to operate with confidence and compliance, your business needs the right insurance in place.
This guide outlines the mandatory business insurance in Cyprus and the optional policies that can protect your investment, team, and long-term success.
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Mandatory Business Insurance in Cyprus (2025 Update)
1. Employer’s Social Insurance (Cyprus Social Insurance Scheme)
All employers in Cyprus are legally required to register their employees with the Cyprus Social Insurance Services and make contributions.
- Covers basic public healthcare, maternity, pension, and unemployment
- Required for both local and foreign employees
- Registration must be done before employment begins
2. Employer’s Liability Insurance (Compulsory Insurance for Businesses in Cyprus)
This insurance is mandatory for any business that employs staff in Cyprus. It protects you from claims if an employee is injured or becomes ill due to work-related reasons.
- Minimum required coverage: €160,000 per employee
- Mandatory under Cyprus labor laws
- Frequently required when renting office space or bidding on tenders
3. Motor Vehicle Insurance (For Company-Owned Vehicles)
If your company owns or operates any vehicles, you must have third-party motor insurance. It is required by law and must be active at all times.
Recommended Business Insurance in Cyprus (Optional but Wise)
While not legally required, these insurance types provide strategic protection for SMEs, startups, and international companies.
1. Public Liability Insurance in Cyprus
Protects your business from third-party claims related to injury or property damage on your premises.
- Essential for retail, hospitality, and service industries
- Often requested when leasing commercial property
2. Professional Indemnity Insurance for Consultants & Service Providers
Highly recommended for legal advisors, IT firms, architects, and finance professionals in Cyprus.
- Covers negligence, errors, or omissions that result in client losses
- Protects your reputation and finances
- Frequently required for contracts with public or international clients
3. Business Property Insurance in Cyprus
Protects physical assets such as office space, equipment, stock, and fixtures against fire, theft, and natural disasters.
- Can be bundled with contents insurance
- Optional add-on: Business interruption coverage
4. Cyber Insurance in Cyprus (2025 Trend)
As cyber risks grow, businesses in Cyprus are increasingly adopting cyber insurance for:
- Data breach recovery
- Ransomware attacks
- Business continuity protection
- GDPR compliance and fines
5. Directors & Officers (D&O) Insurance
This insurance protects executives and board members from personal liability related to decisions made on behalf of the company.
- Especially important for startups, scale-ups, and funded businesses
- Often required by VCs or corporate partners
6. Private Health Insurance for International Teams in Cyprus
Even with GESY (Cyprus’s public health system), private international health insurance is recommended for:
- Founders, expats, or remote teams
- Faster specialist access
- Coverage across multiple countries
- Group health plans from 2–3 employees
Why Having the Right Business Insurance in Cyprus Matters
Getting the right insurance is about more than legal compliance. It’s about protecting what you’re building.
Benefits of business insurance in Cyprus include:
- Legal and tax compliance
- Risk reduction and business continuity
- Employee security and retention
- Greater trust from partners, investors, and clients
Need Help Choosing Business Insurance in Cyprus?
At Nicos Rossos Insurance Brokers, we help businesses across Cyprus and Europe navigate the insurance landscape with clarity and confidence.
We work with top global insurers — including Bupa Global, Cigna, Now Health, Allianz, AXA, and more — to find tailored insurance solutions that match your team size, budget, and business goals.