Foreign investors and local business owners often ask what insurance is mandatory for Albanian companies. Albania’s legal framework requires certain types of insurance depending on the company’s activities, employees, and industry sector.
Every company operating in Albania must comply with statutory insurance obligations to ensure legal operation and avoid penalties.
Main Types of Mandatory Insurance
The key forms of mandatory insurance for Albanian companies include:
– Social security and health insurance for employees, covering pensions, health care, unemployment benefits, and other statutory contributions
– Employer’s liability insurance for workplace accidents and occupational diseases, paid as part of social insurance contributions
– Motor vehicle insurance if the company owns or operates vehicles, including compulsory third-party liability coverage
Certain regulated industries also have sector-specific insurance requirements. For example, insurance brokers must hold professional liability insurance; construction firms may be required to maintain insurance for on-site risks; and travel agencies must carry financial guarantee insurance under tourism regulations.
Registration and Payment
Social and health insurance contributions are declared and paid monthly to the Social Insurance Institute and the General Directorate of Taxes. Employers must register employees for coverage from the first day of employment and maintain updated payroll records.
For motor vehicle insurance, companies must obtain policies from a licensed Albanian insurance provider to legally operate company-owned vehicles. Proof of coverage must be carried in the vehicle at all times.
Additional Optional Coverage
While only certain insurances are mandatory under Albanian law, many companies choose to purchase voluntary insurance such as property insurance, business interruption coverage, or directors’ liability protection to reduce operational risks.
Foreign-owned companies are encouraged to assess their sector’s regulatory requirements and consider additional coverage that aligns with international business standards.
Mandatory insurance for Albanian companies includes employee social and health contributions, employer liability coverage, and motor vehicle insurance. Additional sector-specific insurance may apply depending on the business activity.