Work-accident insurance is a private insurance policy that Portuguese law requires for both employers and self-employed workers in construction.
What it is
Work-accident insurance (seguro de acidentes de trabalho) is a private insurance policy, bought from a private insurer rather than from a public body. It covers the cost of an accident that happens while someone is working, such as medical care, lost income, or compensation for permanent injury. Portuguese law sets standard terms for the mandatory policy [Portaria 256/2011]. What a policy actually covers still depends on the policy itself: which people are insured, which activity, which territory, and which period.
Who needs it?
Every employer in Portugal must insure its employees against work accidents, for every employee, not just some of them. Self-employed workers must also take out this insurance for themselves, since they have no employer to do it on their behalf. This applies across the construction sector, regardless of the size of the company or the type of work. There is no exemption for small jobs or short contracts.
What it is for
The insurance protects the worker if an accident happens on site, covering treatment and lost income while they recover. It also protects the employer or the self-employed worker from having to cover the full cost of an accident out of pocket. A valid policy has to be in force, and it has to cover the relevant people, the activity, and the period of the work. On a construction site, employers also have to keep the policy and the proof of premium payments for the workers they have on site (Decree-Law 273/2003, article 21).
Its link to the IMPIC construction licence
Having a valid work-accident insurance policy is also a legal condition for keeping a valid IMPIC (the body that licenses construction companies) construction licence. If the insurance lapses, the construction licence itself can be suspended, even if all other conditions are still met. The two requirements are separate on paper, but tied together in practice: a company cannot really operate legally without both.
What to watch out for
Because the insurance is a condition for the construction licence, letting a policy expire creates two problems at once. Renewing insurance on time protects the worker and keeps the construction licence active.
Many people assume this insurance only applies to employees. It is equally mandatory for self-employed workers.