All information in this article is for general guidance only. For decisions regarding benefits or claims, only the insurance terms and conditions in force at the time apply. In case of doubt, the terms and conditions always take precedence.
With bike leasing company bikes, employees benefit from increased mobility and employers gain an attractive benefit.
But what happens if an employee unexpectedly becomes unable to work during the lease term?
That’s exactly what the Employer Default Insurance (AGAV) is for. It is an integral part of the bike leasing company bike model and provides comprehensive protection for every company bike. This ensures that employers are well protected if employees unexpectedly become unable to work.
This way, you remain flexible—even if an employee’s personal or work situation changes.
The key points at a glance:
- Protects employers in certain cases of employee absence.
- Insurance coverage is included in the lease rate—no deductible.
- Depending on the insurance case, reimbursement of lease payments or early bike return is possible.
- No waiting period: insurance coverage applies from the time the bike is taken over.
Why does the Employer Default Insurance (AGAV) exist?
A company bike is generally leased for several years. During this time, employees’ personal or professional situations can change.
If an employee becomes unable to work for a longer period due to illness or if the employment relationship ends prematurely, the lease contract continues. Without protection, this could result in ongoing costs for the employer. The AGAV was developed to cover exactly this risk.
Insured Risks under the Employer Default Insurance (AGAV)
The AGAV provides planning security in the event of unexpected changes in the employment relationship and relieves employers in handling insurance claims.
As a result, the AGAV covers financial burdens and enables appropriate solutions for each situation regarding the lease contract.
The AGAV provides benefits for the following insurance cases:
- Long-term illness
- Death
- Termination or mutual termination agreement
- Parental leave including maternity protection
- Disability or inability to work
Different benefits are available depending on the insurance case.
Long-term illness
If an employee is unable to work for a long period and is outside of continued salary payments, the AGAV reimburses the total lease payments incurred.
Death
If an employee dies during the lease term, the company bike can be returned early and the lease contract terminated.
Termination or mutual termination agreement
If the employment relationship ends due to termination or mutual termination agreement, the company bike can be returned early.
Parental leave or maternity protection
Two options are available for parental leave or maternity protection:
- Early return of the company bike and termination of the lease contract
- Reimbursement of total lease payments for up to 18 months if the lease contract continues
Disability or inability to work
If an employee is determined to be disabled or unable to work, the company bike can be returned early.
Good to know:
Which specific benefit can be claimed depends on the particular risk and the applicable provisions of the insurance and service manual.
For which employees does the AGAV not apply?
The AGAV provides security for bike leasing and is designed to cover unplanned and unforeseeable absences.
Employee groups without entitlement to AGAV benefits
The following groups are not entitled to benefits:
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Minijob employees and employees not subject to wage tax
In these types of employment, the conditions for insurance coverage are generally not met. Therefore, there is generally no entitlement to benefits from the AGAV.
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Apprentices
Apprenticeships usually have a fixed or limited duration and often end before the lease contract expires. Since these are fixed-term employment relationships, there is no entitlement to benefits from the AGAV.
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Employees in the probationary period
During the probationary period, there is a higher risk of short-term termination of the employment relationship. If termination or mutual termination agreement occurs during this time, the AGAV does not cover the costs.
-
Employees with fixed-term contracts
With fixed-term contracts, the end date is known from the start.
If a fixed-term employment relationship ends, this case is not insured.
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Employees with planned retirement during the lease term
If an employee retires during the lease term, retirement is not an insured event. There is no insurance coverage under the AGAV in this case either.
What does this mean for the employer?
Even if the above employee groups participate in the company bike leasing, there is no insurance coverage under the AGAV in the cases mentioned above.
This means: If one of these cases occurs, the financial risk remains with the employer.
Employers should review these specifics before concluding a lease contract and consider them in their decision-making.
FAQ / Additional Information
What is the AGAV?
The Employer Default Insurance (AGAV) is included in the lease contract and protects employers in case of employee absences.
What does it cover?
Long-term illness, death, termination, mutual termination agreement, maternity protection, parental leave, and disability.
What benefits are provided?
Depending on the insurance case, lease payments are reimbursed or the company bike can be returned early.
What does the AGAV cost?
It is already included in the lease rate—no waiting period and no deductible.
Who reports the insurance case?
The employer reports the insurance case via the bike leasing portal.
For which employees does the insurance coverage apply?
The insurance coverage applies to employees participating in the bike leasing company bike model who meet the respective requirements set out in the insurance and service manual.
Where can I find the full list of benefits?
Insurance for Employers
Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.
If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.