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Compulsory Insurance

in Poland and other


countries

What is compulsory
insurance?
Any type of insurance an individual or business is
legally required to buy. Compulsory insurance is
mandatory for individuals and businesses that want to
engage in certain financially risky activities, such as
operating an automobile or operating a business with
employees. Compulsory insurance is supposed to protect
accident victims against the costs of recovering from an
accident that someone else, such as another driver or an
employer, has caused. Insurance is regulated at the
state level, so each state decides what types of
insurance will be compulsory and how much coverage
policyholders must purchase.

Definition of so called OC
OC (liability insurance) Any type of insurance policy that protects an
individual or business from the risk that they may be
sued and held legally liable for something such as car
accident, injury etc.
ubezpieczenie od odpowiedzialnoci
cywilnej

Types of insurance that are


compulsory in Poland
According to the Article 4 of Compulsory Insurance in PL, these are:

liability insurance for damage caused by the drivers


participating in traffic

liability insurance for farmers to ownership of the farm

farm buildings insurance against fire and other


atmospheric factors and random events

insurance under the separate laws ratified by Poland


special, which relates to occupational groups (i.e. architects,
medicine doctors, engineers, lawyers)

What exactly is minimum guarantee sum?


As defined in the insurance contract, the amount of the
upper limit of liability insurance company under a
compulsory insurance (OC).
There is a plenty of types of minimum guarantee sums it depends mostly
on the type of specific insurance, if this is the vehicles or employers one.
Other division depends if the insurance is dependent on damage of
possession or person.
The most common for vehicles and its minimum guarantee sums:
- for possesions 1 000 000 euros, in relations to single accident related to
insurance area
- for person 5 000 000 euros

For brokers ; 1 000 000 euros, in relation to single accident related to


insurance area ; 1.500.000 euros in relation to all types accidents related to
insurance (same as farmers)
For tax advisors ; 10.000 euros, in relation to single accident related
For lawyers ; 50.000 euros, in relation to single accident related
For doctors ; 46.500 euros, in relation to single accident related; 275. 000
euros in relation to all types of accidents related
For valuer ; 25.000 euros in relation to single and all types of accidents
related

Types of insurance that are


compulsory in UK

liability insurance for damage caused by the drivers


participating in traffic

Employers Liability

Types of insurance that are


compulsory in Australia

car insurance

workers compensation

professional indemnity and public liability

business insurance

Types of insurance that are


compulsory in US

car insurance (except i.e. Alabama, Iowa,


Mississippi, New Hampshire, Pennsylvania)

These states have financial responsibility laws, requiring you to post a


bond, cash deposit or approved self-insurance with the state to cover
damages if youre involved in an accident.

Obama Care

Obamacare requires all eligible individuals, including children, to have


health insurance. Failure to be insured can trigger a penalty fee of $95
per adult and $47.50. To avoid a penalty, you must have health
insurance that meets the law's minimum standards for coverage.

Liability Insurance prices For Companies in Poland

Company:
- Accounting company
- Physical Owner who
runs economic activity
- Just opening

Liability Insurance:
- Obligatory min.10000 EUR

Since 2015 OC insurance for Accounting offices is


obligatory. On the polish market there are two main
companies that offer this type of insurance PZU and AXA.

558 z
Only Obligatory
for a start up company

480 z

2569 z

The most extented insurance


(up to 200 000 z in every category)

Insurance: from activity, for additional risk and surplus


(insurance hedeges risk with subcontractors and
documents failure)

2032 z
Insurance: from activity, employees, surplus