Employer's civil liability insurance

This insurance compensates an employee or their family for damages when the employee suffers an injury or dies due to an accident at work or while commuting to or from work, and the employer is liable for the incident. The coverage extends to losses not compensated by mandatory social insurance.

Who is this insurance relevant for?

The obligation to ensure safe working conditions is absolute; therefore, every employer faces risk. The level of risk varies: according to data from the State Labour Inspectorate, the highest number of serious and fatal accidents is recorded in the construction and manufacturing sectors, as well as in transport and logistics.

Especially relevant if your company

carries out construction, installation, or repair work
has a production or processing unit
works in logistics, warehousing, or transport
uses machine tools, lifting equipment, or self-propelled machinery
sends employees to work at clients’ sites
has many employees performing physical work

It is also relevant if

The majority of employees work in offices—yet workplace falls and injuries occur across all sectors.
employees travel to meetings or business trips
employees are traveling to and from work — protection covers this time as well

An accident can happen at any workplace. The difference is not the probability, but the extent of the possible consequences.

What does this insurance cover?

The insurance covers damages that the employer is required to compensate to the employee or their family members when the employer’s liability is established by a court judgment or a settlement agreement.

Compensation paid to the employee or their family

Medical expenses not covered by social insurance
Rehabilitation and nursing expenses
Funeral expenses
Lost income exceeding the benefits paid by Sodra
Non-pecuniary damage
Damage to an employee’s property — clothing, phone, car

When is protection valid?

Workplace accident
Accident on the way to or from work
Incidents at client sites where your employees are working
Occupational diseases, if this coverage is included
Legal defense costs in defending against a claim

The territory is selected separately — Lithuania, Europe or the world. This is important if employees go on business trips.

Where do Sodra benefits end?

Social insurance for workplace accidents compensates only for pecuniary losses—namely, sickness benefits and compensation for loss of working capacity. Non-pecuniary damage is not compensated at all under this law; the injured party or their family must claim it directly from the employer.

– by:; – –– –

Type of damage:	Social insurance	remains the employer’s responsibility.
Sickness benefit for the period of incapacity for work	is paid	—
Compensation for loss of working capacity	paid in accordance with the law	covers the difference up to the actual income not received.
Treatment and rehabilitation expenses	a portion	the remaining portion
Non-pecuniary damage	not paid	Full amount
Damage to employee’s property	not paid	full amount
Legal defense costs	not paid	own funds

Why non-pecuniary damage is the hardest risk to predict. The law does not specify its amount. The court makes its determination based on the criteria set out in Article 6.250 of the Civil Code—namely, the severity of the consequences, the degree of fault, the financial standing of the parties, and other relevant circumstances. This list is not exhaustive, and courts at different levels sometimes assess similar circumstances differently.

For the employer, this entails a liability the magnitude of which cannot be calculated in advance. It is precisely this type of risk that is worth transferring to an insurer.

The most difficult cases are those where multiple employees are affected by a single incident. In such instances, the question of employer liability can become a matter of the company’s business continuity.

What does this insurance not cover?

The insurance applies when the employer is liable for the damage. It does not cover cases where an employee is injured due to their own intentional actions, nor does it replace the obligation to comply with occupational safety requirements.

Not included in the coverage

Intentional actions by the employee aimed at causing an accident
Injury sustained while committing a criminal act
Acting on one’s own initiative for personal interests without the supervisor’s knowledge.
Risk of intoxication without a separate supplement
Fines and sanctions imposed by the State Labour Inspectorate
Non-pecuniary damage, if this coverage is not included in the policy

Covered by separate products

Damage to third parties → general civil liability
No-fault payment to the employee → employee accident insurance
Executive management solutions → Directors and Officers (D&O) liability
Damage to company property → business property insurance

Insurers ask how the company conducts briefings and training, assesses workplace risks, provides personal protective equipment, and records incidents. This affects both the price and the terms.

What determines the price of insurance?

The price is determined by the level of operational risk, workforce structure, safety practices, and the chosen limits. There is no standard rate—two companies of the same size may receive significantly different quotes.

Areas of activity and their share of turnover. Not only the core activity is evaluated, but also the share of revenue each one generates.
Number of employees by group. The ratio of administrative staff to other employees indicates the proportion of staff working under higher-risk conditions.
Nature of the work. Work at heights, or work involving machinery, chemical substances, or heavy loads, is subject to stricter assessment.
Occupational safety practices. Briefings, training, personal protective equipment, workplace risk assessments and incident registration — documented procedures improve conditions.
History of accidents. A zero figure is a positive signal and can help in negotiations.
Limits per event and per contract period.
Deduction.
Territory. Lithuania, Europe, or the world.

What to decide before taking out insurance

The policy consists of several separate layers of protection. Which of these are included determines whether the protection will actually be effective.

Main limit per event. It must correspond to the worst realistically possible scenario, not the average one.
Limit for the contract period. Dažniausiai lygus limitui vienam įvykiui arba dvigubas. Svarbu, jei per metus galimi keli įvykiai.
Non-pecuniary damage. A separate protection line — more on that below.
Insurance of employees’ personal belongings. Relevant if personal tools, equipment, or vehicles are used for work.
Risk of intoxication. Rarely needed, but worth considering for certain activities.
Deduction. Choose an amount that the company can cover without difficulty.
Territory. If employees work abroad, this must be specified immediately.

One of the most important decisions. Non-property damage is a separate line of protection in the policy, not a standard part. Since it is her social insurance that does not fully compensate, the policy without this line leaves the largest and most difficult to predict risk unprotected. It’s a good idea to make sure it’s included before signing.

What you will need to fill out the questionnaire

We will retrieve the company name, address, date of incorporation, and NACE code from the Centre of Registers—you simply need to enter the company code. It is useful to have the following ready in advance:

Area of activity and its percentage share of turnover
The number of administrative staff
The number of other employees
Correspondence address, if different from the registration address
History of workplace accidents
Desired limits per event and per period, as well as the deductible.

The questionnaire takes about 5–7 minutes to complete. If you haven’t yet decided on the limits, you can select “I don’t know”—the broker will then suggest options based on your activity profile.

Frequently Asked Questions

Is employer's liability insurance mandatory?

No, this is voluntary insurance. Compulsory insurance covers workplace accidents and occupational diseases, with premiums paid by the employer to Sodra. However, it covers only part of the damages, leaving the remainder the employer’s responsibility.

How does it differ from the benefits paid by Sodra?

Social insurance compensates for pecuniary losses—such as sickness benefits and compensation for loss of working capacity—in accordance with statutory procedures. Employer’s civil liability insurance covers amounts exceeding these benefits: the difference in lost income, medical expenses, and non-pecuniary damage.

Is non-pecuniary damage covered automatically?

No. In the policy, this is a separate coverage item that must be included intentionally. Since social insurance does not fully compensate for non-pecuniary damage, a policy without this item leaves the greatest risk unprotected.

Does the coverage apply on the way to or from work?

Yes. Standard coverage includes accidents that occur during work, as well as those happening while commuting to and from work. This is one of the areas employers most often overlook when assessing their risks.

How does it differ from employee accident insurance?

Employer’s liability insurance applies only when the employer is liable for damages and serves to protect the company. Employee accident insurance provides a payout directly to the employee, regardless of fault, and acts as an employee benefit. These products do not replace one another.

Does the insurance cover employees on business trips abroad?

It depends on the selected territory—Lithuania, Europe, or the world. If employees travel on business trips or work at clients’ sites abroad, the territory must be specified when concluding the contract.

Are occupational diseases covered?

Often yes, but not always automatically. It is worth checking coverage for occupational diseases separately, especially if your work involves exposure to noise, vibration, or chemical substances, or entails heavy physical exertion.

Does the insurance cover fines imposed by the State Labour Inspectorate?

No. Administrative fines and sanctions are not covered by the protection. Insurance also does not exempt one from the obligation to conduct briefings and training, assess workplace risks, and provide personal protective equipment.

Related insurance products

Employer’s liability covers damages to one’s own employees. These products cover related areas.

General civil liability

Damage to third parties arising from your operations, premises, or products

Business Property Insurance

Buildings, equipment, and stock — protection against fire, water damage, and theft.

Carrier's liability (CMR)

Transport companies — liability for the cargo being transported

Protect the company and employees

Fill out the questionnaire to receive offers from Lithuania’s leading insurers and compare not only prices but also the scope of coverage.

We store and use your data solely for the purpose of preparing a proposal.