Entrepreneur’s insurance – what insurance do you need as an entrepreneur?
As an entrepreneur, you are responsible for your own income, the continuity of your business, and managing risks. That’s why insurance plays a key role in your everyday security. Some insurances are mandatory, such as self-employed persons’ pension insurance (YEL), while others are voluntary but often highly beneficial.
Which insurances are mandatory for entrepreneurs?
For most entrepreneurs, the only mandatory insurance is YEL insurance. If you employ staff, you are also required to take out statutory employee insurances.
In short:
- YEL insurance is mandatory for most entrepreneurs
- TyEL insurance and workers’ compensation insurance are mandatory for employers
- Your company form and number of employees affect your insurance obligations
Missing mandatory insurance can lead to gaps in social security and possible financial consequences.
Entrepreneur’s insurances
| Insurance | Mandatory or voluntary | Who it's for |
|---|---|---|
| YEL-insurance | Mandatory | Entrepreneur |
| Medical expenses insurance | Voluntary | Entrepreneur |
| Self-employed persons' accident insurance | Voluntary | Entrepreneur |
| TyEL insurance | Mandatory for employers | Employees |
| Workers' compensation insurance | Mandatory for employers | Employees |
| Liability insurance | Often recommended | Company |
When do you need YEL insurance and what does it cover?
- YEL insurance is pension insurance for self-employed people, and it forms the foundation of your social security as an entrepreneur.
- You need YEL insurance if you work as an entrepreneur, are between 18 and 68 years old, live in Finland, and the value of your work input (i.e., your YEL income) is at least €9,423.09 per year in 2026.
- YEL insurance helps you build up your pension and secures your income if you fall ill, lose your ability to work, or take parental leave.
We recommend taking out YEL insurance as soon as the conditions are met. You must take out the insurance within six months at the latest from the start of your YEL-covered business activity. The start date of the insurance is always recorded as the date when the conditions were first met, even if the policy is taken out retroactively.
What insurance does a sole trader need?
As a sole trader, your business and personal finances are closely linked.
For sole traders:
- YEL insurance is often mandatory
Optional – but often useful – insurance:
- health and accident insurance
- liability insurance
What insurance does a limited liability company entrepreneur need?
Your insurance needs as a limited liability company entrepreneur depend on your role in the company and the size of your business.
Typically, you need:
- YEL insurance for the entrepreneur
- statutory insurance for employees
- business liability insurance
- any necessary property insurance
How does YEL insurance affect your social security?
Many entrepreneurs only realise the importance of insurance when something happens. That’s why it’s important to know that your YEL income largely determines the level of your social security.
It directly affects how much you receive in benefits in different life situations.
Your YEL income affects, for example:
- the amount of sickness allowance
- the amount of parental allowance
- your future pension
- your unemployment security
- your financial security during periods of disability
- the compensation level of voluntary accident insurance
With the YEL calculator, you can easily estimate how your YEL income affects your pension and social security. You can also compare how different due dates and payment schedules affect your YEL contribution.
What are the benefits of YEL insurance?
YEL insurance is not a savings account – it is a mandatory insurance that provides lifelong security in different life situations and for unexpected events.
What does an entrepreneur’s insurance cost?
The cost of an entrepreneur’s insurance depends on several factors. The most important ones are:
- your YEL income
- your industry
- your company form
- the number of employees
Of these, your YEL income directly determines your YEL contribution, which is the most important statutory insurance for entrepreneurs. In addition, your industry affects the cost of voluntary insurance: the higher the work-related risk, the higher the premium may be.
Calculate your YEL contribution
