For a company, the most important and often only mandatory insurance is the self-employed person's pension insurance, YEL. In addition, there are certain industry-specific self-employed person’s mandatory insurance policies, such as patient insurance and environmental damage insurance.
The employing company must take care of the employer’s insurance, such as the statutory workers' compensation insurance and the employment pension insurance. If the company has vehicle or trailers, there must be a motor liability insurance for them.
– Regardless of whether you are a new or seasoned self-employed person, our specialists will tailor an insurance solution suitable for your company. With the insurance policies in order, you can concentrate on your business, says customer relationship specialist Aleksi Kotkajuuri, Pohjola Insurance, corporate customer services.
It pays to take care of insurance matters together with a specialist. Insurance does not need to be complicated.
– Our specialists speak the same language as our customers and sit on the same side of the table. It is important to us to be able to provide expert assistance in insurance matters so that our customers can save their energy for their business operations, says Sales Coach Topi Viskari, Pohjola Insurance.
Self-employed persons’ pension insurance (YEL)
Self-employed person’s pension insurance (YEL) affects the self-employed person’s pension as well as maternity, paternity and parental allowance. The YEL also helps the self-employed person if they get sick or their company’s operations are interrupted.
The YEL insurance is based on the self-employed person’s own estimate of their earnings. This means the amount the self-employed person could pay as one year’s salary to a person doing the same job. Many self-employed persons set their YEL payments to the minimum, which may result in lower-than-expected pension, maternity allowance or paternity allowance later on. Doctors, dentists as well as self-employed persons working in construction or HPAC have done a particularly good job of setting their YEL payments at the right level.
We can also provide you with our partner Ilmarinen’s YEL insurance.
The YEL insurance is mandatory if the self-employed person is 18–67-years old, lives in Finland, works for their own company or has been self-employed for a minimum of four months. YEL is also mandatory if the self-employed person is not covered by any other pension law on the basis of the same operations and their earned income is more than EUR 8,261.71 (in 2022).
A person who owns more than 30% of a limited liability company is insured as a self-employed person. If the ownership is less than 30%, the person is insured as an employee.
The mandatory insurance policies of the employer and the employing company
Employee pension insurance TyEL
If you hire employees for your company, in most cases you are obliged to provide them with workers' compensation insurance, employee pension insurance (TyEL) as well as employees’ group life insurance. The company must also pay unemployment insurance contributions, which are determined on the basis of the salaries paid by the self-employed person.
The TyEL obligation enters into force when the employee is 17–67 years old, is in an employment relationship and receives a minimum salary of approximately EUR 60 per month.
The TyEL contribution is a certain percentage of the salaries, and it is determined on the basis of the Employees Pensions Act. Part of the employee pension insurance is paid by the employee. The self-employed person’s task is to withhold a specific percentage of the employee’s salary and pay it to the insurance company.
Workers’ compensation insurance
With regard to the employer’s mandatory insurance policies, the statutory workers' compensation insurance becomes relevant when the salaries paid or agreed to be paid by the employer are a minimum of EUR 1,300 in a calendar year. The workers' compensation insurance is mandatory if the company has any employees. Leisure-time insurance is not mandatory.
The amount of payment depends on the industry as well as the risk level of the work. The amount of payment is based on the Workers' Compensation Act. The company may have several different payment percentages in place, depending on the task.
Employees’ group life insurance
According to generally applicable collective agreements, the employer is obliged to get employees’ group life insurance for its employees. The payments of this mandatory employer’s insurance are made in connection with the workers' compensation insurance. The payment is a specific percentage of the salary expenses.
Industry-specific mandatory insurance
One of the most common industry-specific mandatory insurance policies is patient insurance. The company must get patient insurance if its operations include health care or nursing, for example, massage or physiotherapy.
The insurance covers, for instance, any damage caused to the patient in connection with the treatment.
Environmental damage insurance
Companies whose operations require environmental or chemical permits, need environmental damage insurance. The same applies to companies whose operations may result in general damage, risks or environmental damage. Farmers may also need environmental damage insurance.
Motor vehicle insurance
The company’s vehicles, such as cars, vans or trucks as well as working machines, snowmobiles, all-terrain vehicles and trailers must be insured by the company’s motor liability insurance. The company’s motor liability insurance covers personal injury and damage to the innocent party.
We offer all relevant types of insurance, both mandatory policies and voluntary policies.