Mandatory insurance in Denmark – what international companies need to know

Mandatory insurance for companies operating in Denmark

If your company has employees in Denmark – whether you are a Danish or foreign entity – there are insurances you are legally required to carry. Non-compliance can result in fines and personal liability for management.

1. Workers' compensation insurance (mandatory)

All employers with staff in Denmark must carry workers' compensation insurance (arbejdsskadeforsikring). This applies from the very first employee – including part-time, temporary, and even unpaid interns.

What does it cover?

• Medical treatment costs from workplace accidents
• Permanent injury compensation (from 5% disability)
• Loss of earning capacity (from 15% reduced capacity)
• Death benefits for surviving dependants
• Crisis therapy for psychological trauma

Reporting deadlines:

• General accident: within 14 days of the first day of absence
• Expected absence over 5 weeks: within 9 days
• Fatal accidents: within 48 hours to AES (Labour Market Insurance)

What happens if you are not insured?

AES will compensate the employee – and then demand full reimbursement from the employer, plus a fine.

2. Occupational disease insurance / AES contributions (mandatory)

All employers pay quarterly contributions to AES, which covers occupational diseases – conditions that develop over time due to working conditions. The contribution depends on your industry code and number of employees.

3. Motor vehicle liability insurance (mandatory)

Companies with vehicles registered in Denmark must carry motor liability insurance covering personal injury and property damage caused by the vehicle.

Special considerations for foreign companies

Foreign companies posting employees to Denmark must:

• Register in the RUT register (Register of Foreign Service Providers)
• Take out Danish workers' compensation insurance – coverage from your home country cannot be transferred
• Pay AES contributions via Samlet Betaling (combined payment)
• Report workplace accidents via the EASY system (using your RUT number)

Not mandatory – but strongly recommended

• General liability insurance – covers damage to third parties
• Building insurance – often required by banks or lenders
• Cyber insurance – relevant for all digitally connected businesses

Need guidance?

As an independent insurance broker, we help international companies navigate Danish insurance requirements. We ensure you are compliant from day one – and that you do not pay more than necessary.

Contact Niels Ulrich at nu@fairside.dk or call +45 40 74 08 11 for a no-obligation conversation.