It is important to hedge against entrepreneurial risks. You can therefore insure yourself for everything. This applies to both you and your company. We have listed the most important insurance policies for you and your company.
Insurance for your business
Make a good assessment of the risks you run as an entrepreneur. Which business insurance is really necessary? Banks, insurance companies and trade associations often offer ‘entrepreneur packages’ that include the most common business insurance policies. Compare insurance premiums and coverage and seek advice from an independent advisor if necessary.
Tip: What insurance do you need? Use the Chamber of Commerce Insurance Check . After answering a few questions, you will receive advice on which insurance policies are useful for your company.
Note: ‘A liability insurance for my company? I already have private insurance’, Chamber of Commerce regularly hears entrepreneurs say. This is not right. Your private liability insurance does not cover business damage.
With these insurance policies you avoid having to pay for damage claims yourself:
Business liability insurance
You have opened a beautiful store, but a customer trips over your rug. Or you are a consultant and during a presentation a cup of tea falls over a laptop that is not yours. You want to be insured for this type of damage.
Business liability insurance is also known as corporate liability insurance (AVB). This insurance covers:
- damage to property (material damage). For example, someone’s laptop breaks because you spill your coffee on it.
- damage (injury) to persons (personal injury). Someone breaks a wrist by slipping on a loose carpet in your office.
- damage indirectly caused by an accident (financial consequential damage). For example, someone can no longer work and therefore loses income.
Professional liability insurance
Professional liability insurance (BAV) covers damage caused by professional errors. Are you a lawyer, doctor, architect or accountant? Then professional liability insurance is even mandatory. It is also wise to take out a BAV for other professions. For example, for consultants or advisors. If you make a professional error, this can cause high financial consequential damage or financial loss for your customer. Financial loss means that someone makes less profit or has less money as a result of the damage. The BAV covers this risk.
Video: Mastering Business Risks
Vinsent Hooimeijer, account manager at Interpolis, explains how you can limit your liability as a self-employed person.
Legal expenses insurance
According to your customer, you have completed an assignment satisfactorily, but your customer refuses to pay. Or you have a dispute with the landlord of your property. Unfortunately, as an entrepreneur you may be faced with a legal conflict. Business legal expenses insurance offers professional legal support, such as the costs of legal advice, litigation and court costs and lawyer’s fees. Often the conflicts have to do with unpaid bills. So make sure that collection assistance is also included in your legal expenses insurance.
Cyber insurance
With cyber insurance you protect yourself against costs that you have to incur if you become the victim of a cyber incident. Most cyber insurance policies cover more than just business interruption. Think of liability for damage to third parties: when you have to pay for the damage that, for example, a customer or business partner incurs as a result of your cyber incident. And the cost of any legal assistance you may need.
Building, property and inventory insurance
Are you renting an office space, business space or retail property? Or do you own a business premises? Fire or burglary can cause damage, for example the loss of stock. You can insure your business premises with building insurance . You insure your inventory through inventory insurance Also known as business contents insurance. Your business contents insurance covers your business assets such as tools, machines, computers and electronics. For example, if damage is caused by fire, storm, water or theft. You insure your trading stock with goods insurance. Usually, the goods that are outside the business premises, but on our own property, are also insured. Some insurers offer inventory and goods insurance as a single product. Find out what you need and don’t pay too much premium unnecessarily. Do you work from home? Then private contents insurance is usually sufficient. Always inquire about this with your insurer.
Business interruption insurance
Suppose your company comes to a standstill due to fire or another cause. Your turnover will then come to a standstill, but your personnel costs and rent will continue as usual. The compensation of the business interruption insurance covers the fixed costs and possibly the difference in profit because your company was at a standstill or because you made less turnover. This way you can continue your business.
Companion insurance
Do you work together in a general partnership, partnership or private limited company or in another legal form? If your partner dies, heirs can claim part of the company. The partner insurance then pays out an amount of money, so that the business can be continued. Make sure you leave your company in good shape and think about what happens if you or your partner dies.
Insurance for yourself
Health insurance
The only insurance that you are obliged to take out is health insurance . Whether you have a company, are self-employed or are employed, everyone has health insurance. In addition to your premium, you also pay an income-related contribution via the tax return afterwards. This contribution is in addition to the premium you pay to your health insurer. The higher your income, the higher the contribution.
Disability insurance
If you work as a self-employed person, you will not receive benefits in the event of illness or an accident. You may be able to cover a few days or weeks of not working due to illness with savings. If you are out of the running for a longer period of time or if you become incapacitated for work, there is no safety net. With disability insurance (AOV) you arrange the loss of your income in the event of illness or disability.
However, many self-employed people find such insurance too expensive. Did you know that there are more options to insure yourself of an income? Here are the four options:
- You take out disability insurance through an insurer.
- You register with a donation circle in your area.
- You register with a crowdsurance platform.
- You continue your disability insurance via UWV (within 13 weeks after your last day in paid employment).
Video: Mastering Business Risks
Risk specialist Norbert Bakker of B2Bsure explains how you, as an entrepreneur, provide income in the event of illness or disability.
Pension
You are your own boss, so you decide when you stop your business. Everyone in the Netherlands is entitled to AOW from a certain age. If you do not make any further arrangements as an entrepreneur, you will only receive state pension. Do you want to accrue pension as an entrepreneur ? Then this can be done through a pension insurance, bank savings, single premium policies or an alternative pension product. You have to arrange this yourself. Start early and ask an insurance adviser or bank about the possibilities.
Are you starting from an employment position or a benefit situation? In that case, ask your pension insurer whether you can continue your accrued pension.
Mandatory pension applies to a limited number of industries and professional groups. For example, if you are a painter or physiotherapist, you are obliged to pay pension to the Occupational Pension Fund for painters or physiotherapists.
The new pension agreement also stipulates that self-employed persons without employees will also be given the opportunity to voluntarily join a pension fund in the sector for which they work. It is not yet known when these plans will take effect.
Term life insurance
Do you have a partner and/or children? When you pass away, the financial consequences can be huge for those left behind. If you work as an employee, your partner and children will receive a survivor’s pension in the event of your death. As an entrepreneur you are not entitled to this scheme. Term life insurance ensures that your partner and children receive benefits for a certain period.
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