Does an employer have to take out occupational injury insurance?
Does an employer have to take out occupational injury insurance?
hello...... starting monday im hiring one installer part time........ company has been operating for a year...... do i have to buy him yrkesskadeforsikring right away, if he only works 20 hours a week........?
Hiring an employee comes with obligations relating to pay, reporting and protection in the event of an injury or occupational illness. In this article, we explain who must take out a policy, who needs to be covered and how the situation differs between an ENK owner and an AS owner.
We also cover the scope of protection, what to do after an accident and the consequences of running a business without the required insurance. All amounts and rules are stated as of 2026.
When is insurance mandatory?
Every employer in Norway must take out private yrkesskadeforsikring (occupational injury insurance) for their employees. This obligation follows from the Occupational Injury Insurance Act.
The policy must be in force from the employee's first day of work. The obligation does not depend on:
- the number of employees,
- the size of the position,
- the level of pay,
- the length of the contract,
- the probationary period,
- the risk level in the industry.
If you employ just one person for a few hours a week, you must still insure them. This also applies to seasonal workers, temporary workers and part-time employees.
What matters is the actual nature of the working relationship, not merely the name of the contract. If a person formally issues invoices but in practice works under your direction like an employee, the relationship may be considered employment. We discuss this issue in more detail in the article Is it legal to set up a business and work for one client in Norway?
Special exceptions apply, among others, to the Norwegian state and certain work carried out for private individuals. As a rule, they do not apply to an ordinary business employing workers.
ENK and AS - who must be covered by the policy?
The business structure primarily affects the insurance of the owner. Employed workers must be covered by a policy in both an ENK and an AS.
| Situation | Is insurance mandatory? | Explanation |
|---|---|---|
| ENK owner without employees | No, not for the owner | An ENK owner is not an employee of their own business |
| ENK employing a worker | Yes, for the employee | The obligation arises from the employed person's first day of work |
| AS owner employed by the company | Yes | The company is the employer and must cover the owner under the policy like any other employee |
| One-person AS where the owner is the only employee | Yes | The number of employees does not change the obligation |
| Shareholder receiving dividends only | Not automatically | Being a shareholder or board member alone does not mean employment |
An AS owner who receives pay and is reported in the a-melding (monthly employment and payment report) must be covered by insurance. You can read more about the report itself in the article What is an a-melding and when must it be submitted?
Voluntary protection for an ENK owner
An ENK owner can voluntarily take out a private policy for themselves or join NAV's voluntary insurance scheme. These are two separate solutions that may provide different levels of benefits.
In 2026, the contribution for voluntary insurance through NAV is 0.4% of expected annual income. Expected income must exceed 1 G, which is NOK 136,549 from 1 May 2026. The contribution is calculated on a maximum of 12 G, or NOK 1,638,588, so its maximum amount is approximately NOK 6,554 per year.
Policy coverage, price and documentation
The insurance covers injuries arising during work, at the workplace and during working hours. Protection applies without the need to prove that the employer was at fault.
| Type of incident | Standard scope of protection |
|---|---|
| Sudden accident while carrying out work | Covered |
| Occupational illness recognised under the regulations | Covered |
| Injury caused by a harmful substance or work process | Covered |
| Ordinary commute between home and a permanent workplace | Generally not covered |
| Gradually developing ailments resulting from ordinary strain | Generally not recognised as an occupational injury |
The policy may cover, among other things, loss of income, treatment costs, future expenses, permanent medical impairment and benefits for the relatives of a deceased employee.
How much does the insurance cost?
In 2026, there is no single statutory rate or minimum price expressed in NOK. The premium is set by a private insurer based on information such as:
- the industry and occupational risk,
- the number of employees and full-time equivalents,
- the type of work performed,
- salary levels,
- the history of previous claims.
The employer should compare offers and update the information after changes in staffing, payroll or the business profile. Usually, one group policy is taken out for the business rather than a separate agreement for each person.
The cost of the mandatory policy is a tax-deductible business expense (it reduces taxable income). No employer's national insurance contribution is calculated on the premium, and statutory protection paid for by the company is not a taxable employee benefit.
The insurer's name should be included in the written employment contract. We describe the remaining document requirements in the article Employment contract in Norway - learn the rights and obligations of employers and employees
Keep the policy, confirmations of its renewal, information provided to the insurer and documentation of reported accidents.
What should you do after an occupational accident?
Reporting a claim to a private insurer and reporting it to NAV are two separate procedures. Both must be completed.
The person submitting the digital injury report to NAV must have the appropriate authority to represent the business in Altinn.
An accident must be reported to NAV as soon as possible, no later than 1 year from the incident. An occupational illness must be reported within 1 year from the date the employee became aware of its occupational cause.
A claim against the insurer is generally time-barred after 3 years, counted from the end of the year in which the employee gained, or should have gained, knowledge of the circumstances giving rise to the claim. However, for evidentiary reasons, you should not wait until the end of this period to report an injury.
Consequences of not having mandatory insurance
The lack of a policy does not automatically deprive the employee of the right to compensation. The claim may be handled by the Norwegian scheme protecting people injured by uninsured employers.
For the business, this means serious consequences:
- an obligation to repay the full amount of compensation paid to the employee,
- liability regardless of whether the lack of a policy was intentional,
- the risk of a fine,
- possible imprisonment for up to 3 months,
- liability of the person managing the business on behalf of the employer.
The amount recoverable is not limited to the premiums the business saved. If the injury causes a permanent loss of earning capacity, the employer may face a recovery claim covering substantial compensation for future lost income and other consequences of the accident.
FAQ - frequently asked questions
Summary
- Every employer in Norway must cover employees with private occupational injury insurance from their first day of employment.
- An ENK owner is not subject to mandatory protection as an employee of their own business, but can take out voluntary insurance. An owner employed by their own AS must be covered by the policy.
- After an accident, both the insurer and NAV must be notified. The lack of a policy may mean repaying the full compensation, a fine or imprisonment for up to 3 months.
If you need help with occupational injury insurance for your employees, call us: +47 21 38 38 21. We help employers in Norway organise their employment-related obligations.
Article author: Marcin - marcin@efirma.no