Insurance is an extremely important element, not only on a personal level but also when it comes to business. There are a number of mandatory insurances in Bulgaria, without which a business could not survive. But the truth is that insurance isn’t only an obligatory part of a company’s growth. It provides security, safety for personnel and business and offers a number of other advantages.

If you are about to set up a new business or just want to learn more about compulsory insurance under the Insurance Code, this article from MKAFinance will be helpful. We will look at the mandatory insurance in some of the most popular fields of work, as well as observe additional insurances that you should be aware of.

Compulsory insurance for transport activities

If your company is engaged in transport activity or transport is part of its obligations, then the following two insurances are mandatory.

Motor Third-party liability insurance

Motor third-party liability insurance is an obligation for every person who owns a motor vehicle registered in Bulgaria. The insurance is also mandatory for individuals who drive a motor vehicle from a third country upon entering Bulgaria, in case the person does not have valid insurance for the country and a “Green Card” certificate.

It is important to note that the minimum insurance amount when creating this insurance for property and non-property damages as a result of bodily injury or death, is worth BGN 10,000,000. The insured can receive compensation for various damages, lost benefits and others.

Passenger Accident Insurance

Passenger accident insurance insures the health and life of passengers in buses, trolleybuses, rail vehicles, aircraft, vessels, ropeways, railways and other vehicles. If an insured event takes place on the territory of the Republic of Bulgaria, the insurance will cover the damage.

The minimum insurance amount for individual events for each passenger is BGN 50,000. In cases where an accident occurred during a trip and within a period of up to one year and caused the risk of death or loss of working capacity to the insured person, the event is considered insured.

Occupational accident insurance

Before we go into detail about this type of insurance, it is important to note that “Occupational Accident” is mandatory for a wide range of workers, not just drivers. Occupational accident insurance offers employees and employers financial protection in scenarios where injuries have been incurred on the job.

In other words, this type of insurance is mandatory for persons who perform work activities with an increased risk of injuries. The insurance amount is calculated according to the monthly gross salary of the insured person, with the minimum amount being 7 times the annual gross salary of the person.

Design and construction insurance

The next mandatory insurance we will look at is that which applies to construction companies and construction designers. It provides compensation for damages caused by other participants in the construction. Here, the insured individuals can be the consultant, the designer, the builder, the person responsible for construction supervision, as well as the person responsible for technical control.

Insurance for damages that may occur as a result of culpable failure to fulfill obligations

Liability insurance is mandatory for lawyers and partners of a law firm, registered auditors, notaries, private bailiffs, independent appraisers, persons who practice geodesy, cartography and cadastre, as well as medical staff.

Weapon Law Insurance

What you need to know about Gun insurance is that it is mandatory for security guards licensed to carry firearms and ammunition.

Additional insurance you should consider

Now that you are familiar with the main mandatory insurances, it’s worth mentioning a few insurances that are not mandatory but recommended to consider.

Property insurance

Property insurance is certainly worth your attention as it provides protection for business office spaces, warehouses, showrooms and other premises.

Cyber ​​insurance

Considering how much business information is stored in the digital space today, it’s only natural to think about cyber insurance. Cyber ​​insurance is highly recommended for online stores, but also for other businesses of an online nature.

Specialized insurances

A number of specialized insurances are also available for individual industries. Although they are not required by law, it would be helpful if you made them mandatory for your business.

Our advice is to start with thorough research of the insurance market, which will help you find the right choice for your business. You could save more if you find a package price that includes several insurances that are right for you.


Consult with an attorney and accountant regarding mandatory business insurance. If you are interested in an additional insurance package, please share this information with your insurance broker and let them guide you.

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