Is Employers Liability insurance mandatory for all businesses in Cyprus?

Yes, in Cyprus it is strictly mandatory. Under the Employers Liability Insurance Law (Law 174/1989), insurance is compulsory for any individual or legal entity employing staff in Cyprus, including full-time, part-time, temporary workers, and volunteers. You are legally required to maintain minimum coverage limits of €160,000 per employee, €3,415,000 per incident, and €5,125,000 annually. Exemptions typically apply only to self-employed individuals with no staff or strictly family-run businesses with no outside employees. For everyone else, failure to provide proof of a valid Insurance Certificate is a criminal offense, punishable by up to one year in prison, fines of up to €5,000, or both.

Does a regulated business in Cyprus require Professional Indemnity (PI) insurance?

Yes, many regulated businesses in Cyprus require Professional Indemnity (PI) insurance as a condition of licensing or professional body membership. Professional bodies such as the Cyprus Bar Association (lawyers), ICPAC (accountants and auditors), and ETEK (architects and engineers) require PI insurance for practicing rights, while CySEC (AIFMs) and the Central Bank of Cyprus (EMIs) mandate it for operational licenses to protect clients against professional negligence, errors, or omissions.

What insurance does a business in Cyprus legally require?

In Cyprus, two types of insurance are legally mandatory for most businesses: Employers Liability Insurance (Law 174/1989) and Motor Vehicle Insurance (Law 96(I)/2000) for any company vehicles. Beyond mandatory cover, sector-specific requirements apply: Regulated financial firms (EMIs, PSPs, Investment Firms) require Professional Indemnity and Civil Liability insurance by CySEC and the Central Bank of Cyprus. Lawyers require PI insurance by the Cyprus Bar Association (minimum €170,860 per claim). Accountants and auditors require PI insurance by ICPAC (minimum €200,000 per claim). Architects and engineers require PI insurance by ETEK (minimum €300,000 per claim). Real estate agents require PI insurance by CREAC (minimum €100,000 per claim). Insurance brokers require PI insurance by ICCS (minimum €1,000,000 per claim). Technology firms require Tech E&O, Public Liability and Cyber Liability for international contracts. Gaming and media companies require Media Liability and IP insurance for distribution agreements. For all other businesses, Cyber Liability, Public Liability, and Directors and Officers (D&O) are strongly recommended.

I am a Non-Executive Director; do I need D&O insurance in Cyprus?

Yes, absolutely. Under Cyprus Companies Law (Cap. 113), there is no legal distinction between Executive and Non-Executive Directors regarding liability. As an NED, you can be held personally and unlimitedly liable for management failures, regulatory breaches (CySEC, CBC), or insolvency issues, even if you are not involved in daily operations. Directors and Officers (D&O) insurance is essential because it protects your personal assets from defense costs and legal settlements. In Cyprus, D&O is a standard pre-requisite before accepting any board seat to ensure protection against claims of fiduciary neglect or oversight failures.

Do I pay for insurance advice or quotes at Nexus Inc?

No. At Nexus Inc, consultations, risk assessments and insurance quotes are completely free with no obligation. We earn a commission fee from the insurer when we place your policy. There is no direct cost to you for our advice or expertise. For international placements or deep-dive policy audits, a policy administration fee or consulting fee may apply. This is always discussed and agreed with you upfront. There are no hidden charges.

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