Does Redundancy Insurance Exist in Ireland? (And What Actually Protects You)

Does Redundancy Insurance Exist in Ireland? (And What Actually Protects You)

If you've ever typed "redundancy insurance Ireland" into a search engine, you've probably come away confused — or empty-handed. You're not alone. It's one of the most common questions we receive at QuoteLeader, and the honest answer surprises most people.

So let's set the record straight.

Is Redundancy Insurance Available in Ireland?

No — at least not as a standalone retail product available to Irish consumers.

Unlike in the UK, where redundancy insurance (sometimes called unemployment insurance or ASU cover) has historically been sold to individuals, there is currently no Irish-authorised insurer offering a standalone redundancy or unemployment insurance policy to the public.

This isn't a gap that brokers can fill by sourcing a product from abroad, either. Post-Brexit, UK insurers cannot write Irish risks without Central Bank of Ireland authorisation or an Irish branch. EEA insurers theoretically could, but none are actively distributing a redundancy product in the Irish retail market at present.

The cover gap is real. The demand for it is real. But for now, the product simply doesn't exist here.

Why Do So Many People Think Income Protection Covers Redundancy?

This confusion is completely understandable — and it matters, because acting on it could leave you seriously underprotected.

Income protection insurance is designed to replace a portion of your income if you are unable to work due to illness or injury. It pays out when a medical condition prevents you from doing your job. It does not pay out if you lose your job for any other reason — including redundancy.

To be precise:

• Income protection pays out for: serious illness, injury, mental health conditions, cancer, musculoskeletal problems, and other medical conditions that prevent you from working.
• Income protection does not pay out for: redundancy, company closures, economic downturns, or any other non-medical reason for job loss.

This distinction is written into every income protection policy in the Irish market. If you are made redundant while in good health, your income protection policy will not pay a penny — and rightly so, because that is not what it is designed for.

What Protection Does the Irish State Provide for Redundancy?

Ireland does have statutory protections in place for workers who are made redundant, and it's worth understanding what these actually provide.

Statutory Redundancy Pay

If you have been continuously employed for at least two years, you are entitled to statutory redundancy pay under the Redundancy Payments Act. The formula is two weeks' pay per year of service, plus one additional week, capped at €600 per week. For many workers, this provides a short-term financial cushion — but it is a lump sum, not an ongoing income replacement.

Jobseeker's Benefit

After redundancy, you may qualify for Jobseeker's Benefit from the Department of Social Protection, provided you have sufficient PRSI contributions. As of 2026, the maximum personal rate is €254 per week. For most households, this falls significantly short of covering typical monthly outgoings such as mortgage repayments, car loans, childcare, and household bills.

The reality is that statutory protections were never designed to fully replace income during a prolonged period of unemployment. They are a floor, not a safety net.

What Can You Actually Do to Protect Yourself?

While redundancy-specific insurance isn't available in Ireland, there are steps you can take to reduce your financial vulnerability if the worst happens.

1. Build an emergency fund

The most direct form of redundancy protection available to you right now is a cash reserve. Financial planners typically recommend three to six months of essential outgoings held in an accessible savings account. This won't solve the problem indefinitely, but it buys you time.

2. Protect the risks you can insure

Although you cannot insure against redundancy, you absolutely can — and should — insure against the other major cause of income loss: illness and injury. Income protection insurance provides up to 75% of your income if you are unable to work due to a medical condition, and it pays out until you either recover or reach retirement age. Given that illness and injury are statistically the more likely reasons for prolonged income loss, this cover is arguably more important than redundancy cover would be.

Use our income protection calculator to get a sense of the level of cover that would be appropriate for your circumstances.

3. Understand your employer's sick pay policy

Many people who worry about redundancy haven't fully assessed what sick pay they would receive from their employer if illness struck. Some employers offer generous schemes; others offer nothing beyond the statutory minimum. Understanding this gap helps you prioritise your protection spending.

Does Income Protection Make Sense Even If I'm More Worried About Redundancy?

Yes — and here is why.

The two risks aren't mutually exclusive. You could face illness and redundancy at different points in your working life. Income protection insures against one of those risks comprehensively and affordably, with full tax relief on premiums at your marginal rate. For a 35-year-old non-smoker in an office role, a meaningful level of cover can cost less than €1 per working day after tax relief.

If and when redundancy insurance becomes available in the Irish market, it will sit alongside income protection — not replace it. For now, covering the insurable risk is the sensible first step.

You can read more about how income protection works in our guide What Is Income Protection Insurance in Ireland?, or learn about the significant tax savings available in our post on income protection tax relief.

If you are self-employed, the absence of any employer safety net makes the picture even clearer — see our guide to income protection for the self-employed.

The Bottom Line

Redundancy insurance does not currently exist as a product available to Irish consumers. The demand is there, the need is real, but the market hasn't filled the gap — yet. In the meantime, the most effective things you can do are build an emergency fund, ensure you are not confusing income protection with redundancy cover, and make sure the protection you can access — against illness and injury — is properly in place.

If you'd like to explore your income protection options, our advisers are happy to help. Get an income protection quote today, or call us on 01 539 4450.