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Mandatory Work Insurance: What it is, Its Benefits & the Type of Coverage it Provides


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The minute that you get hired for any job position, there are certain benefits that you will be entitled to. Aside from your main salary, you are supposed to get other perks like a health insurance plan and a mandatory work insurance policy. When a qualified employee has a number of job opportunities to choose from, these are usually what makes a difference when it comes to the option that they will actually choose. Here, we will take a look at what mandatory work insurance is, what its benefits are and the type of coverage that you will get for such an insurance plan.

Mandatory Work Insurance: The Basics

First, what exactly is a mandatory work insurance plan? Also called worker’s compensation insurance plan, this is a type of insurance policy which protects employees in case they suffer from an injury or acquire an illness while on the job. Unlike health insurance plans which are more of a part of the benefits package, a worker’s insurance plan is a legal requirement for employers. This means that if you are signing a job contract which does not indicate that you will receive mandatory work insurance compensation, then you are being deprived of your rights as an employee.

What are the Benefits of Mandatory Work Insurance Plans?

One of the biggest misconceptions that most people have when it comes to the claims that they can make against mandatory work insurance is that it only provides coverage for accidents which occur within the workplace. The coverage provided by this type of an insurance plan actually extends to more than that.

As long as you are doing something related to your work, you should receive compensation in case you fall ill or get into an accident. Let’s say that you only have a basic car insurance plan because you own a second hand vehicle, anyway.

If you get into a car accident and suffered from injuries while on your way to work, the mandatory work insurance plan that you have should also provide coverage for that. It is instances like these when it pays to carefully read the Terms and Conditions of the agreement so that you can get the best plan possible.

The Type of Coverage Provided for Mandatory Work Insurance Plan Holders

To have a deeper understanding of the importance of getting mandatory work insurance, here is a quick list of the benefits that you can obtain:

  • Medication, hospitalization and recovery cost for when an employee falls ill or gets into an accident while at the workplace, while travelling to work, or while performing work-related duties outside the office.
  • Wages lost for the period that an employees is unable to work.
  • Depending on the comprehensiveness of the coverage, this type of an insurance plan may also include disability benefits, vocational rehabilitation, permanent or temporary disability benefits, death compensation for beneficiaries and supplemental job displacement benefits.

As you can see, the coverage of mandatory work insurance (we Danes call them Lovpligtig arbejdsskadeforsikring ) plans is quite diverse. It is up to your employer to choose which insurance plan to get for their employees. Even if the nature of your job does not require you to do some physical work, it still pays to check on the comprehensiveness of your employer’s mandatory work insurance policy coverage to make sure that it will benefit you in the end. You simply cannot do business without this type of insurance, so check here to know more.


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